Chapter 7 vs. Chapter 13

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Chapter 7 vs. Chapter 13

The US Bankruptcy Code allows everyday people to get rid of their debts. Debtors with mostly consumer debt such as credit card debt, personal loans, secured debt and even back owed taxes can file for bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code. Each filing offers a debtor different options in how they get out of debt and what property they can keep. Below are some common examples of the differences in each of the types of bankruptcy filings.

Your choices are clear…

Chapter 7 bankruptcy can provide much-needed relief for individuals drowning in debt, offering a path towards financial freedom and a fresh start. If you’re considering filing for bankruptcy, contact New Tomorrow Law, APC® to let us help you navigate the process effectively and understand how it may impact your financial future.

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Qualification

To qualify for Chapter 7 bankruptcy, you must pass a means test, which compares your income to the median income in your state.

Protection of Assets

Chapter 7 bankruptcy can eliminate unsecured debts such as credit card balances, medical bills, personal loans, and utility bills.

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Choosing the right chapter to file for bankruptcy under depends on a debtor's unique individual situation. Debtors should consult with an attorney to review their case and determine the best type of case to file. No matter which type of bankruptcy case is chosen, once a case is filed debtors can live hassle free from creditors. And once completed, debtors can get the fresh start they deserve.

Choosing the right chapter to file for bankruptcy under depends on a debtor's unique individual situation. Debtors should consult with an attorney to review their case and determine the best type of case to file. No matter which type of bankruptcy case is chosen, once a case is filed debtors can live hassle free from creditors. And once completed, debtors can get the fresh start they deserve.

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