It’s easy to find bankruptcy attorneys in Waynesboro, VA. It isn’t easy to find reliable attorneys who give competent advice. You need a specialist if you’re filing for bankruptcy to ensure you protect all your assets and make the best choices for your financial future. While this can’t be considered legal advice, here are some ways to decide whether you should file Chapter 7 or 13 bankruptcy.
The Difference between Chapter 7 and Chapter 13
When you file Chapter 7 bankruptcy, you essentially wipe your debts clean. There are a few types of bills that cannot be discharged through bankruptcy. These include child support obligations, student loans and other types of secured loans, such as mortgages. Many times it makes more sense to file for bankruptcy than try to pay off all your debts because of high interest rates or limited income that doesn’t allow for extra monthly expenses.
Chapter 13 bankruptcy helps you establish a repayment plan for your debts. These can be normal debts, such as closed credit card accounts, and mortgages facing foreclosure. When you’re in Chapter 13, you have to make regular payments to keep certain assets.
Which type of bankruptcy you file for often comes down to what you own, what you owe and how much you have to spend each month. It is possible to file for bankruptcy on your own; however, filing through bankruptcy attorneys in Waynesboro, VA, can often be more affordable. It also ensures no mistakes are made when settling your accounts.
Do You Own Many High-Value Assets?
High-value assets are expensive belongings like real estate and vehicles. People who own many expensive items, particularly if they owe back payments on them, should consider filing Chapter 13. People with older cars of little value and those who rent are probably better off filling for Chapter 7. Homes and cars aren’t the only types of high-value assets, however. When in doubt, talk with bankruptcy attorneys in Waynesboro, VA, about your valuables.
Do You Live Paycheck to Paycheck?
People who have little extra money to spend each month may find a Chapter 13 bankruptcy repayment plan difficult or impossible to maintain. However, your budgeted payments may also be much less than you’re expecting. If you’re a candidate for both types of bankruptcy, it’s important to sit down with bankruptcy attorneys in Waynesboro, VA, to compare the two on paper to see which offers the best short- and long-term benefits for you.
