Which Is Best for Me? Chapter 7 or Chapter 13 Bankruptcy?
Chapter 7 is a straight bankruptcy case. A chapter 7 case discharges most unsecured debts within approximately 4 months. If you wish to retain your home or motor vehicle, you continue to make the regular payments. If, however, there are mortgage arrears, past due vehicle payments or non-dischargeable taxes, a chapter 7 case does not offer very much assistance. Also, the bankruptcy trustee may be able to take and liquidate of your assets in chapter 7.
Chapter 13 is a personal reorganization case. In chapter 13, you propose a monthly payment plan based upon what you can afford which lasts from three to five years. A Chapter 13 case discharges the same debts as a chapter 7 case. The discharge comes at the conclusion of the plan. Chapter 13 is often more beneficial than chapter 7 for people with pending foreclosure sales, motor vehicles which are worth significantly less than the debt against them, substantial tax liabilities or assets which they would lose in a chapter 7 case. Chapter 13 stops a pending foreclosure sale and allows as long as five years to make up past due payments. Chapter 13 allows you to keep your motor vehicle and pay the lesser of the value or debt. Chapter 13 allows up to five years to pay past due taxes while discharging penalties and stopping interest. Finally, bankruptcy trustees do not take any assets in chapter 13.
At The Law Offices of Charles M. Sabo, we have helped thousands of people achieve financial freedom under both Chapter 7 and Chapter 13 Bankruptcy.
"As the economy gets tough, there are many law firms making some incredible claims. Our firm will never make empty promises. We will be completely honest with you from the first time you call and throughout your case. Client service with respect and integrity is always our primary focus." — Attorney Charles Sabo
A successful bankruptcy filing can:
- Stop harassing collections immediately
- Discharge unsecured debts, including credit card debt
- Arrange affordable monthly payments on remaining debt
- Immediately stop wage garnishments
- Immediately stop mortgage foreclosure
- Prevent tax liens against property
- Discharge certain tax debts
Contact us online or call us at 480-820-5931 (Tempe) or 623-842-0180 (Glendale) to learn more about Chapter 7 or Chapter 13 bankruptcy as a means to free yourself from your debts. Susan will answer many of your questions and arrange an opportunity for you to meet directly with attorney Charles Sabo. We have been helping people find a fresh start through bankruptcy for more than 30 years. The right bankruptcy lawyer can make a huge difference. We have helped thousands of clients over the years, and we can help you as well.
