Chapter 7 Vs. 13
Helping Clients from Edgefield, North Augusta and Aiken
While bankruptcy provides a powerful mechanism for discharging unmanageable and burdensome debt, your unique circumstances determine whether you should file for Chapter 7 or Chapter 13 filing. They are very different and an ideal resolution comes from choosing the filing that works best for your unique circumstances.
Differences Between Chapters 7 And 13 In Aiken
In a Chapter 7 filing, many assets are often exempt, meaning that you can keep them. In some circumstances, nonexempt property is liquidated or sold in an effort to pay creditors. In this case, a discharge of your unsecured debts is typically granted in 90 to 120 days. This means you no longer have the responsibility to pay these debts, and your creditors can no longer take action to collect. In a case where you must liquidate property in order to satisfy a debt, you work to keep paying for the asset in order to keep it. Such assets may include a house or a car. It is important to note, however, that Chapter 7 bankruptcy is not for everyone. If you own large amounts of property, it may be ideal to pursue a Chapter 13 filing.
In contrast, a Chapter 13 filing allows a filer to pay secured creditors while paying off unsecured creditors a portion of the owed debt. This is done over a five-year period in a payment plan. One of the main differences in a Chapter 13 filing is that it is considerably more complex than a Chapter 7 filing. As indicated above, Chapter 13 is often advisable for people who have more significant assets.
With more than a quarter century of experience, attorney Andrew C. Marine is ideally suited to help you or your loved ones get back to financial stability.
To discuss bankruptcy law or any issue regarding Chapter 7 vs. 13 in Edgefield in an initial consultation with a South Carolina lawyer, call 803-335-0504 or email the Law Offices of Andrew C. Marine.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.