The Bankruptcy Company (TBC) Videos

Chapter 7 vs. Chapter 13 Bankruptcy

Video Transcription:

Most people who file bankruptcy need either a Chapter 7 or a Chapter 13.

Because of all of the details of the law, it really takes a bankruptcy attorney to determine which chapter is right for you. But, in general, Chapter 7 is designed to eliminate debt. This works well for medical bills, credit card debt, or personal loans. However, the law limits the amount of assets you can protect.

A Chapter 13 is designed to restructure your debt by changing the amounts which your creditors are to be paid. It is often used to prevent foreclosures and repossessions, and to make it affordable to catch up on missed house or car payments. You need a regular source of income to file a Chapter 13, but the payments are based on what you can afford to pay each month to your creditors. Which chapter is best for you will depend entirely on your specific circumstances.

Call TBC to set up your free, confidential and no-obligation consultation to discuss your situation and options with one of our attorneys. Then you can make an educated decision about how to move forward.