If your debt is out of control and you cannot afford to pay your creditors, it is vital that you forge a new path. For many, a Chapter 7 bankruptcy can be the answer to their financial troubles. This federally regulated option can help you avoid the repercussions of unpaid debt and start rebuilding your credit record. An attorney can help you determine if this is the answer to balancing your accounts.What Is the Difference Between Chapter 7 and Chapter 13 Bankruptcy?
One of the first questions you need to answer before filing for bankruptcy is whether you should file for Chapter 7 or 13 bankruptcy. You might have heard 7 referred to as a "fresh start" or a "straight" bankruptcy. This is because it clears most debts within a few months from the start of the process. On the other hand, 13 utilizes monthly payment plans over the course of several years before debts can be discharged.
Some people opt for Chapter 13 to retain ownership of properties considered non-exempt by bankruptcy laws. However, many who file for Chapter 7 can keep many of their belongings. If your home and car payments are current, you might find that this faster option is a viable choice for your financial health.What Can I Claim with a Chapter 7 Bankruptcy?
Your credit report is used by lenders to determine your ability to pay your debtors. With a bankruptcy, you can have the negative items removed and start rebuilding your credit. You can eliminate the following:
- Old utility bills
- Medical bills
- Credit cards
- Unsecured debt
In addition to cleaning up your credit report, filing for bankruptcy provides other benefits. If your credit woes have creditors and collection agencies calling daily, you can eliminate these troubling contacts for good. Once your bankruptcy is processed, you will no longer be subject to wage garnishment either.
If you are tired of being harassed by creditors and falling further behind on your bills, it is time to take a proactive stance. Speaking to an experienced bankruptcy attorney is the first step in reclaiming your life and financial health.
At The Sellers Law Firm, we have offices in Montgomery, Selma, Greenville and Troy, AL. Contact us today for a free consultation appointment, usually within 24 hours. Call 334-LAWYERS (334-529-9377) to begin repairing your finances.