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Bankruptcy Chapter 7 vs 13: Which Is The Best Option?

Debt Free Colorado

If you have a large amount of credit card debt or high medical costs that you can’t pay, Chapter 7 may allow you to start again. Chapter 7 is a disaster when it comes to secured debt. . Chapter 7 will not assist you if your primary source of debt is a mortgage, auto loan, or other kinds of debt.

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What Is the Difference Between Chapter 7, 11, and 13 Bankruptcies?

Credit Corp

It’s typically a good idea to consult an experienced bankruptcy lawyer before you file a bankruptcy petition. Bankruptcy does have some benefits, such as potentially putting a stop to wage garnishments or foreclosures. Usually during a Chapter 13 you only pay off part of your debts. It’s a powerful protection.

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10 Common Questions About Bankruptcy

Debt Free Colorado

Find Out the 10 Common Questions About Bankruptcy with Colorado Bankruptcy Lawyers. Chapter 13’s main advantage is that it stops creditors from bothering you and allows you to keep property subject to a security interest, provided you continue to make payments in the repayment plan. What Debts are Discharged in Bankruptcy?