Which Type of Bankruptcy is the Best Option for You?
For filing bankruptcy, it is necessary that you know which type of bankruptcy is the right one for you. While major companies are often heard to file Chapter 11 bankruptcy, most of the consumer cases are filed as Chapter 7 or Chapter 13 bankruptcy. So, choosing wisely is necessary, and to do that, you need the assistance of an experienced Pittsburgh bankruptcy lawyer.The Best Type of Bankruptcy
You are probably plagued by one question, which is the right option for you. There are two straight answers to it. Firstly, there is no form of bankruptcy that can be called “ideal” or “best.” And secondly, the type of bankruptcy you will be filing will depend on the unique financial situation you are dealing with and what you are trying to accomplish from the filing. Chapter 7 or chapter 13, anything can be suitable for you given your unique situation.
When you will file for bankruptcy, you will have to go through Means Test. This test will measure the income of the filer as per the average income of other families. If the income level goes down the set benchmark, you will need to file for Chapter 7 bankruptcy. If your income is higher than the benchmark, then you will have to file for Chapter 13 bankruptcy.
However, in some cases, when one qualifies for Chapter 7, they can be eligible for Chapter 13 too. This will depend on the fact whether your income is enough to cover the proposed repayment plan by the trustee. Talking to a Pittsburgh bankruptcy lawyer will help you to make the decision.How to Pick the Bankruptcy Chapter
Picking the right chapter can be tricky when you are filing for bankruptcy, especially when you qualify for both chapters. How will you pick?When Chapter 7 is a Better Choice
Chapter 7 bankruptcy is the best option when you are in a hurry to deal with the debts and perhaps eliminate them completely. The Chapter 7 bankruptcy takes around six months to get discharged.
With filing chapter 7 bankruptcy, you get to eliminate the debts. But at the same time, there is a price you will have to pay. You might have to let go of your assets too. When you are filing for chapter 13, you will be paying the debts but you will still get a chance to save your assets.When Chapter 13 Bankruptcy is a Better Option
If you have any co-debtor and you want to protect them, then filing for Chapter 13 bankruptcy is the right option. When you go for Chapter 7, your creditors will pursue the co-debtors easily for the payments.
With chapter 13, you will be able to save your assets. The trustee will give you a repayment plan that will help you restructure the payments of your creditors. But for that, you won’t have to sell off your assets, home, or car. With chapter 13, you can catch up with the payments of a car loan or mortgage of your home.
When you are looking for assistance from Pittsburgh bankruptcy lawyer, come to us at Pittsburgh Bankruptcy Law Group. We will guide you at every step.