Bankruptcy law provides two different paths that lead to resolution of a financial crisis. Chapter 7 bankruptcy dismisses debts; Chapter 13 bankruptcy provides a way to eventually pay them. If you think that you prefer one over the other, you can find out for sure at the Law Offices of David Kohm.
Compare the Two Paths
Deciding on which path to take when you file for bankruptcy is not as easy as it may seem. David Kohm is an expert on bankruptcy law, and his office can help you figure out the best choice for your particular situation. If you decide in a consultation with your attorney that you want to file for bankruptcy, you need to learn about the differences between the two paths.
Chapter 7 Bankruptcy Pros and Cons
- Some of your debts are dismissible.
- You are not required to have a plan to repay your debts.
- If you have anything of value, you may have to forfeit it.
- The process takes less than six months.
- Record of bankruptcy stays on your credit report for up to 10 years.
- You may have trouble getting a credit card again.
Chapter 13 Bankruptcy Pros and Cons
- You agree to a repayment plan that lets you satisfy your creditors by paying a portion of what you owe.
- The process may take up to five years to complete.
- You get to protect your assets and you may avoid foreclosure proceedings.
- Your credit rating is affected, but the impact is not as serious as in Chapter 7.
Talk to Your Attorney
As you try to make a decision about your financial situation, you can get some clarity in your thinking by talking to an attorney at the Law Offices of David Kohm. Neither Chapter 7 nor Chapter 13 can solve all of your problems, but either one is better than doing nothing.
You can ask your Arlington bankruptcy lawyer to write a note about the conditions that led to your financial problems, and it may have some influence on how the court handles your case. Take steps now to get your finances under control by calling the Law Offices of David Kohm at 817-204-0900.
