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Chapter 7 Vs. Chapter 13

Drowning in debt? If you feel that you can no longer make your payments, then you may want to consider filing for bankruptcy. There are different types of bankruptcies you can file, and each has its own benefits and drawbacks. Which one should you choose? There are a variety of factors to consider before you make your decision, but the way in which you can make the best choice for yourself is by understanding the differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy in Watertown.

Attorney Stuart Alford’s over 30 years of experience in bankruptcy issues across Massachusetts sets him apart. He understands the stakes his clients face and works diligently to provide the information they need.

Your Choice Of Bankruptcy Depends On Your Goals

Before going into depth on the different types of bankruptcies, you need to ask yourself what you want out of this repayment plan. Do you want to prevent your house from foreclosing, or is walking debt free more of a priority to you? Do you have a stable income to pay back your debts? A Chapter 7 bankruptcy is chosen by some because of its ability to discharge the debtor’s obligations. This means that a bank trustee will take your property, unless it qualifies as exempt property, and sell the property in order to pay back your creditors. Although you will lose property in filing a Chapter 7 bankruptcy, you won’t have to spend years paying back your debts.

A Chapter 13 bankruptcy is, for the most part, for individuals with a consistent income who want to keep their property. Depending on the results of your bankruptcy means test, the court may determine for itself that a Chapter 13 bankruptcy is best for you. The bankruptcy means test is a way in which to determine if you have the capacity to pay off your debts. The idea behind this test is that people should pay back their debts if they can. Of course, some who do qualify for a Chapter 7 bankruptcy choose to file for a Chapter 13 bankruptcy because they would only have a seven-year credit reporting period, as opposed to the 10-year credit reporting period that would be required if one filed for a Chapter 7 bankruptcy. Choosing between a Chapter 7 and Chapter 13 bankruptcy is never easy – consult an experienced bankruptcy lawyer to ensure that you are making the best decision possible.

Attorney Alford Will Support Your Choice With Attentive Legal Action

Whether you choose Chapter 7 or Chapter 13 bankruptcy, attorney Alford will be with you. His understanding of the bankruptcy code and procedures will help you take these difficult steps with confidence. Reach out for a meeting today at Alford Legal Group, LLC by phone at 617-802-7852 or send an email using this form.