If you have looked into bankruptcy only to be confused by the different types and who qualifies for each type, you aren’t alone. Many people are unable to understand what the differences between the two types of bankruptcy are and how to determine if you qualify for one or both. This can make deciding whether to pursue a bankruptcy difficult. However, if you see a bankruptcy lawyer in Wadsworth, OH, he can tell you if you qualify and what the differences are.
Chapter 7
A Chapter 7 bankruptcy is the version that will get rid of all your debts without requiring any repayment on your part. This is the most extreme form of bankruptcy and is the one that will do the most damage to your credit. However, if you have a lot of unsecured debt, this can often be the best solution because you don’t have much to lose. This type of bankruptcy will allow you to get a fresh start, freeing you from the burdens of your debt.
Chapter 13
The other option a bankruptcy lawyer in Wadsworth, OH, will discuss with you is the Chapter 13 bankruptcy. In this version, your debts are not discharged. They may be reduced, but you will still owe money to your creditors. Instead of paying your creditors as you have been, though, you will receive a more affordable payment plan so
you can pay off a portion of your debts more easily. This type of bankruptcy will still damage your credit but in a different way.
Which One Is Right?
The hardest part of going through a bankruptcy is figuring out which one is right for you. It can be so tempting to just eliminate all your debt and completely start over. However, it can be difficult to start over because of the damage to your credit. If you can afford it, you will most likely benefit more from a Chapter 13 than a Chapter 7. The best thing you can do is listen to your lawyer. He will be able to guide you in the right direction.
Going into your meeting with a bankruptcy lawyer in Wadsworth, OH, prepared can increase the chances you will be able to more easily make a decision. Absorbing all that information at once can be overwhelming. Learning the basic differences between the types of bankruptcy ahead of time will ensure you get all your questions answered and can more fully understand what is going on.
To learn more about the different types of bankruptcy a bankruptcy lawyer in Wadsworth OH can do for you, visit the Vance P. Truman
