Most people believe that they would prefer to go with a Chapter 7 bankruptcy mostly because it gets things done and over with much faster that a Chapter 13. What they don’t realize is that they may be able to hold onto a lot more of their assets under the chapter 13. In either bankruptcy it is always a good idea to use a Houston bankruptcy attorney to help with the process.
Benefits Of Chapter 13
Under the Chapter 13 bankruptcy you will have to pay some or all of your debts. This can happen without there being the pressure that you are experiencing now. No doubt your creditors are not being very helpful in assisting you with getting out of the financial turmoil that you are in.
The Chapter 13 Bankruptcy is sometimes referred to as a wage earners plan. There is set criteria that you have to meet to qualify for this form of financial relief. If you don’t have enough income compared to your debt load then there is no point in arranging for a repayment plan that you cannot honor.
One of the greatest benefits of this form of bankruptcy is that it gets the creditors off your back. Whatever the bankruptcy court decides on for repayment has to be accepted by the creditors. As long as you are meeting your obligations under the bankruptcy, your creditors cannot demand more of you.
It may turn out that you will not have to repay all your debts, and the Chapter 13 bankruptcy may not be quite as damaging to your overall credit rating