Chapter 7 Or Chapter 13 Bankruptcy?

If you have found yourself in financial trouble and do not know how to get out of debt, the situation can seem very hopeless. Unfortunately, many hard-working individuals and families throughout America are finding it difficult to stay on top of their expenses. Many people believe that filing for bankruptcy should be a last resort, however, if done properly, bankruptcy can be an invaluable tool for struggling families.

Chapter 7 bankruptcy was designed to let individuals get a fresh start. The crippling debt is eliminated and people are given the opportunity to get their lives back on track. Nevertheless, there are some cons as well as benefits. For example, you could lose all of our property and assets to cover part of the debt and your credit rating will be negatively affected. Chapter 13 bankruptcy is different as it does not cover all of the debts. Instead, it organizes the debt and sells off some of the assets. Through a repayment plan that runs of several years, people are able to completely get rid of the money they owe. To learn more, talk to a Ventura bankruptcy lawyer from our legal team.