New Bankruptcy Law Secrets
Chapter 7 Bankruptcy or Chapter 13 Bankruptcy
Generally speaking - if
you have a ton of unsecured debt such as credit card debt, and have few if any assets they
wish to keep the chapter 7 bankruptcy would be ideal for you. You wipe away your debts and
get a fresh start at life.
If your debts aren't all that large and you have a substantial income, you might not be able to qualify for a chapter 7 bankruptcy. As always consult with an experienced attorney for your personal answer.
But if you have a home, car or other assets you wish to retain, you might want to consider a chapter 13 bankruptcy. A chapter 13 is really little more than a court ordered payment extension. The bankruptcy court wipes away the previously agreed upon payment period and replaces it with either a three or five year extended repayment plan.
Some view chapter 13 as financial slavery but others see it very differently. They buy the things they want and then use chapter 13 to extend the payment period so they get to keep everything in a way they can afford.
Major retailers hate bankruptcy of course. They end up with much less than they originally planned. But the chapter 13 really irritates them as consumers can buy a home and fill it with all the goodies and then keep it all despite having too little income.
Bottom
line: if you have enough income to pay off a substantial portion of your debts with a year
or so, you might want to consider either paying off your debts yourself or pursuing a
chapter 13 bankruptcy instead of the more popular chapter 7 route. But if you're clearly
in over your head and unable to make even the minimum payments - chapter 7 may be your
only real option.
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