{"id":3613,"date":"2021-02-26T09:14:12","date_gmt":"2021-02-26T09:14:12","guid":{"rendered":"https:\/\/phoenixfreshstartbankruptcy.com\/?p=3613"},"modified":"2021-04-01T09:22:26","modified_gmt":"2021-04-01T09:22:26","slug":"bankruptcy-chapter-7-and-chapter-13-what-are-the-advantages","status":"publish","type":"post","link":"https:\/\/phoenixfreshstartbankruptcy.com\/bankruptcy-chapter-7-and-chapter-13-what-are-the-advantages\/","title":{"rendered":"Bankruptcy Chapter 7 and Chapter 13: What are the Advantages?"},"content":{"rendered":"

A bankruptcy filing is a legal proceeding wherein a debtor who is no longer capable of paying debts files a bankruptcy petition. Such are filed in the relevant bankruptcy court. Filing for bankruptcy enables debtors to repay creditors or have certain debts wiped out. The qualifications for filing bankruptcy look into an individual\u2019s monthly income, living expenses, and the types of debt that he or she owes. The bankruptcy means test will determine which bankruptcy option will be the best for you.<\/span><\/p>\n

Your bankruptcy case will involve dischargeable and non-dischargeable types of debt. Filing a petition for bankruptcy does not guarantee that all your debts can be discharged. Unsecured debts like credit card bills and medical bills are examples of dischargeable debts. On the other hand, secured debts, child support, alimony, tax debt, and student loan debt are the types of debts that are non-dischargeable.<\/span><\/p>\n

Before filing bankruptcy, it is important to consult a bankruptcy attorney regarding which bankruptcy chapter will be suitable for your situation. The commonly used types of bankruptcy chapters are Chapter 7 (liquidation bankruptcy) and Chapter 13 (reorganization bankruptcy). When filing Chapter 7<\/strong><\/a>, an assigned bankruptcy trustee will evaluate your case and manage the sales of your nonexempt assets. The funds will then be allocated to creditors.<\/span><\/p>\n

\"ChapterIn bankruptcy Chapter 13<\/a><\/strong>, you will be allowed to keep your properties as long as you are paying your debts to lenders. When filing Chapter 13, you shall negotiate a debt repayment plan that will help you in making payments to debt collectors. When you file bankruptcy under this chapter, you may also stop wage garnishment, foreclosure, and repossession.<\/span><\/p>\n

Filing a petition in bankruptcy allows you to have a fresh start with your finances. Note, however, that in a bankruptcy filing, there are advantages and disadvantages. It is highly recommended to seek legal help from an experienced bankruptcy lawyer who will help you understand bankruptcy law. He or she can explain the different bankruptcy forms and will assist you on how to file a bankruptcy petition. Bankruptcy attorneys will help you throughout the bankruptcy process to avoid any legal issues during the actual proceeding.<\/span><\/p>\n

<\/span>What are the advantages of a bankruptcy filing?<\/span><\/i><\/span><\/h2>
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