Benefits of Filing Chapter 7 Bankruptcy

Filing Chapter 7 bankruptcy is a common and relatively inexpensive way to deal with debt. Here are some benefits you can expect:

• You'll eliminate most unsecured debts, such as credit card balances, medical bills, and personal loans.
• You won't have to make monthly payments or work towards paying off your debt.
• Bankruptcy will remain on your credit report for 7 years, but it won't affect your employment prospects.

Benefits of Filing Chapter 13 Bankruptcy

Filing Chapter 13 bankruptcy is a more complex and time-consuming process than filing Chapter 7, but it can be beneficial for individuals with high debt levels. Here are some benefits:

• You'll get to keep your assets, including your home, car, and retirement accounts.
• You'll make regular payments over three years, which will help you become debt-free faster.
• The bankruptcy court will oversee your repayment plan and ensure you stay on track.

What is Chapter 7 and 13 Bankruptcy?

Chapter 7 bankruptcy is a liquidation of your assets to pay off creditors. It's also known as "wound-up" bankruptcy.

Chapter 13 bankruptcy, on the other hand, is a repayment plan that allows you to keep most of your non-exempt assets while making regular payments over three years.