Whether to file for bankruptcy can be a difficult decision. There are certain things to consider when deciding when to file for bankruptcy and which type to use.
There are primarily two types of bankruptcies: Chapter 7 and Chapter 13. Chapter 7 generally gets rid of all your debt. However, you will most likely lose much of your property. On the other hand, you will most likely get to keep your property in a Chapter 13 bankruptcy. However, you will usually need to make a plan to repay all your debts within a certain period.
What Kind of Debt Do You Have?
There are some debts that cannot be gotten rid of even if you file for Chapter 7 bankruptcy. These include student loans, tax debt and child support. If your liability primarily includes one of those types of debt, it typically won’t make sense to file for bankruptcy. In this case, you may try to make an arrangement with your lender.
Have You Filed for Bankruptcy Before?
You usually won’t be able to file for Chapter 7 bankruptcy if you already had your debt forgiven in the last eight years under Chapter 7 or in the last six years under Chapter 13. In order to be able to file for bankruptcy again, you may need to wait until you are eligible.
Deciding which type of bankruptcy to file for and when can be extremely difficult.
Contact William S. Orange III, Attorney at Law to learn more about filing for bankruptcy.