What is the Difference between Chapter 7 and Chapter 13 Bankruptcy?

Are you struggling with debt and wondering if filing for bankruptcy may be the best option for you? For different reasons, many people struggle with large amounts of debt. Whether you have student loans, credit card debt or you were in an accident and have a large amount of medical bills, sometimes people just simply can’t afford to pay their bills. If you’re struggling with a high amount of debt, contact The Law Offices of John E. Mufson. We can help you choose the best path to help eliminate your debt.

There are two common types of bankruptcy for individuals who are looking to file. The first type is chapter 7 bankruptcy. Chapter 7 bankruptcy is when you simply can’t afford to make even the minimum payments on their bills. In chapter 7 bankruptcy, you must liquidate all of your assets in order to pay back your debts. This can give the debtor a fresh start and allow you to begin to rebuild your credit over time.

Chapter 13 bankruptcy is the other common type of bankruptcy for individuals who are looking to file. Chapter 13 bankruptcy is for those who can afford to pay some of their debts, but not all of them back. During chapter 13 bankruptcy, you can avoid the liquidation process while still receiving financial relief. Typically, chapter 13 bankruptcy is a three or five year plan in which debtors can still receive financial relief without having to sell all of their property.

When people hear the word bankruptcy they immediately think that if this is something they do their credit and financial situation will be ruined forever. However, this is not the case and sometimes filing for bankruptcy can be the best option. After filing for bankruptcy, the collection calls will stop and you can begin working towards rebuilding your credit. To learn about the different options and whether filing for bankruptcy might make the most sense for you it’s important to speak with a knowledgeable attorney.

Our attorneys at The Law Offices of John E. Mufson have over 25 years of experience and can help you if you’re struggling with a large amount of debt. We offer free case evaluations for those who are considering filing for bankruptcy. Call our office today to receive legal guidance from the best bankruptcy attorneys in Delray Beach.