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

Debt Free Colorado

The United States Bankruptcy Code governs both chapter 7 and chapter 13 bankruptcy. 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. . Collateral guarantees debt repayment.

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Should You File for Bankruptcy if a Strong Economy is Just Around the Corner

Titan Consulting

When government assistance is not providing enough income to cover job losses, should you file for bankruptcy or hold out for the economic recovery? Slash spending : The widely available payment relief, government stimulus checks, and bonus unemployment payments are temporary measures to help you endure the current economic crisis.

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10 Common Questions About Bankruptcy

Debt Free Colorado

For instance, it may permit the restructuring of debts due to “secured” creditors, or creditors who have an interest in assets like a mortgage or a car loan, but it typically won’t abolish those debts. Are you at risk of falling into foreclosure, being evicted, or having your utilities cut off?