Filing for bankruptcy can provide the financial relief you need from debts that you cannot pay. However, there are different chapters of the bankruptcy code that consumers can file under. Before you make the choice to declare bankruptcy, you need to understand the options available to you and make an informed choice about how you can best deal with your debts. A Long Island bankruptcy lawyer can help you to understand the key differences between chapter 7 and chapter 13 so you can choose the option that is right for you.
Chapter 7 vs. Chapter 13
There are several important and fundamental differences between Chapter 7 and Chapter 13 bankruptcy:
While these are the most important fundamental differences between Chapter 7 and Chapter 13 bankruptcy, there may be other important distinctions as well. For example, Chapter 13 can make it possible for some second-mortgage or other non-primary mortgage debt to be reclassified as unsecured debt. This can make it easier for you to keep your home. No such corresponding option is available in a Chapter 7 filing, although you can generally keep your house after filing Chapter 7 bankruptcy as long as you get current on the loan and reaffirm that you will pay the mortgage debt.
Because of the important differences between Chapter 7 and Chapter 13 bankruptcy, you need to make a smart choice as to which option is best for you. For more than 25 years, the Law Offices of Robert D. Weiss, P.C. has represented debtors facing bankruptcy in Long Island,Suffolk and Nassau Counties. Call today to speak with a member of our legal team and learn how we can help guide you through your bankruptcy from start to end.