Indian Creek bankruptcy attorney says that a major consideration for a person filing a Chapter 13 or a Chapter 7 bankruptcy is the type of debt that they have. For instance, if a person has mortgage arrears that they cannot catch up on with their own, they might be able to file a Chapter 13 and catch up on their mortgage arrears through the Chapter 13 payment plan. This is a great way to save a home. If a person is in dire straits and foreclosure is pending or a foreclosure is on the horizon, then a person might consider filing a bankruptcy Chapter 13 if the ultimate goal is to keep their home. The reason Chapter 13 is so good for that specific purpose is that Chapter 13 is going to allow that person to catch up on their mortgage arrears for three to five years, keep the property and then at the same time become current in the eyes of the mortgage company once the Chapter 13 plan is confirmed. So if the ultimate goal for a person is to keep their home, Chapter 13 would probably be the best way to do it.
Unlike Chapter 13, filing Chapter 7 bankruptcy is not going to allow you to pay back your mortgage arrears. Chapter 7 will completely eliminate your debt for your mortgage arrears; however, it will not allow you to maintain possession of the property. So if a person is trying to save their home, then a Chapter 7 bankruptcy is most likely not the best way to save that person’s home.
Also, when deciding whether to file a Chapter 13 or a Chapter 7 bankruptcy, a person has to consider the income and expenses that they may have. Sometimes a person will not be able to qualify for a Chapter 7 simply because they have too much income per month. So it is very important for a person who is going into a bankruptcy consultation to fully disclose their income and their expenses to their attorney. Full disclosure and being honest is the only way that an attorney will be able to give sound legal advice to a person who is considering filing bankruptcy.
For more information with regard to filing, contact a local bankruptcy attorney who offers a complimentary office visit. There is no reason to pay for the first visit when most attorneys are meeting without cost or obligation. A good attorney will be able to explain all of your bankruptcy options.