Which Bankruptcy Option Is Right for You?

WHICH BANKRUPTCY OPTION IS RIGHT FOR YOU? CHAPTER 7: LIQUIDATION OF ASSETS WHEN IT'S USED • Other than basics such as furniture and clothes, you have little property » You have hardly any money left over each month after basic expenses » You're unable to pay the costs of your basic expenses BENEFITS • Most unsecured debts can be completely eliminated DEBT SC » The process is swift and may only take a few months » You can't be contacted by creditors during or after an automatic stay ELIGIBILITY » YOU MUST: QUALIFY UNDER THE "MEANS TEST" MEET WITH A CREDIT COUNSELOR BEFORE FILING CREDIT CONSEQUENCES CHAPTER 7 » Chapter 7 stays on your credit report for 10 years CHAPTER 13: ADJUSTMENT OF DEBTS WHEN IT'S USED » You own a home or other property that you want to keep » You have steady income and can meet your living expenses » You're unable to make scheduled debt payments BENEFITS 2015-2020 » You may be able to keep your property while paying down your debts » You get 3-5 years to pay your debts as determined by a schedule » You make only 1 payment to a bankruptcy trustee-no contact with creditors » If you have co-signers, they may be protected BANK ELIGIBILITY » YOU MUST: HAVE ANY UNSECURED DEBTS TOTAL LESS THAN $360,475 HAVE ANY SECURED DEBTS TOTAL LESS THAN $1,081,400 CREDIT CONSEQUENCES » Chapter 13 stays on your credit report for 7 years CHAPTER 13 The Law Offices of Adam M. Freiman, P.c. INFOGRAPHIC PROVIDED BY: THE LAW OFFICES OF ADAM M. FREIMAN, P.C. wwW.MORTGAGEHELPMD.COM Sources: http://www.totalbankruptcy.com/overview/basics/chapter7-chapter13-comparison.aspx https://www.freecreditscore.com/blog/understand-bankruptcy-before-you-file/ http://www.allaw.com/articles/nolo/bankruptcy/which-type-chapter-7-chapter-13.html %24