Filing For Bankruptcy - Chapter 7 Vs Chapter 13 Bankruptcy, What Should You Do?
Several sleepless nights pondering what can be done over the debts that are mountain high could drive delinquent borrowers to decide that filing for bankruptcy is the solution.
Although this is a difficult decision to make and it must have taken you months to finally make this drastic decision, but at some point this bitter pill could be the only way out of a tumultuous life that is now revolving around debts, evading debt collectors and the day to day grind of trying to find ways how to pay all those debts.
When you finally think about it, filing bankruptcy seems sweet compared to what you are now going through.
While you're at it, let us look closer what you can expect from a bankruptcy scenario.
The main thing that you can get from a bankruptcy is that your creditors are legally prohibited from further contact with you once you have been approved for a filing.
This is a much wanted scenario where you are finally at peace, without any worry when a collector suddenly pops up to harass or intimidate you into paying your debts.
The next thing is the nature of Chapter 7 bankruptcy.
This is the proceeding where the court will decide to dispose of your assets to turn them into cash and pay off your creditors.
The creditors will not be dealing with you but instead will have to make court filings to get what they want.
Chapter 7 is not about reneging on your debt obligations.
It is about paying them by liquidating your assets under the supervision and direction of the court when filing for bankruptcy.
The main player becomes the court so the emotional stress is taken off from you.
Both you and your creditor will now have to deal with the court to get what you want and express what you have in mind.
You will not have to individually sell off your possessions to pay your debts.
And since the court is overseeing this you do not have to deal with creditors who are fighting for their share of the booty.
Chapter 13 Bankruptcy meanwhile is about the management of your debt by realigning your income and expenses under the direct supervision and control of the court.
Similarly, the creditors are no longer allowed to deal directly with you and they will have to present their arguments to the court to get what they want.
Your assets will not be liquidated but your finances will be managed.
In the same breath, to get what is best for you will need professional help to get the deal that is best for you and to get rid of crippling debts for good.
Although this is a difficult decision to make and it must have taken you months to finally make this drastic decision, but at some point this bitter pill could be the only way out of a tumultuous life that is now revolving around debts, evading debt collectors and the day to day grind of trying to find ways how to pay all those debts.
When you finally think about it, filing bankruptcy seems sweet compared to what you are now going through.
While you're at it, let us look closer what you can expect from a bankruptcy scenario.
The main thing that you can get from a bankruptcy is that your creditors are legally prohibited from further contact with you once you have been approved for a filing.
This is a much wanted scenario where you are finally at peace, without any worry when a collector suddenly pops up to harass or intimidate you into paying your debts.
The next thing is the nature of Chapter 7 bankruptcy.
This is the proceeding where the court will decide to dispose of your assets to turn them into cash and pay off your creditors.
The creditors will not be dealing with you but instead will have to make court filings to get what they want.
Chapter 7 is not about reneging on your debt obligations.
It is about paying them by liquidating your assets under the supervision and direction of the court when filing for bankruptcy.
The main player becomes the court so the emotional stress is taken off from you.
Both you and your creditor will now have to deal with the court to get what you want and express what you have in mind.
You will not have to individually sell off your possessions to pay your debts.
And since the court is overseeing this you do not have to deal with creditors who are fighting for their share of the booty.
Chapter 13 Bankruptcy meanwhile is about the management of your debt by realigning your income and expenses under the direct supervision and control of the court.
Similarly, the creditors are no longer allowed to deal directly with you and they will have to present their arguments to the court to get what they want.
Your assets will not be liquidated but your finances will be managed.
In the same breath, to get what is best for you will need professional help to get the deal that is best for you and to get rid of crippling debts for good.