It is important that you choose the right bankruptcy plan to yourself. Since bankruptcy laws are completed it is best to consult a professional attorney who will guide you. He will be able to tell you about the advantages and disadvantages of choosing between a chapter 7 and a chapter 13 bankruptcy in your particular circumstances. Every situation is different and needs to be analyzed carefully before deciding which plan of bankruptcy filing to choose. These are the following a few points that person should keep in mind.
Filing for chapter 7 bankruptcy can result in losing and assets that you might want to keep such as your home.
Choosing a chapter 7 bankruptcy may help you discharge most of your unsecured debts and allow you to keep most of your assets.
You need to pass the means test to prove that your income is not higher than the median income for your state for your size of the family.
You can only file for a chapter 7 bankruptcy if you can pass the means test.
Chapter 13 bankruptcy will require you to build a repayment plan to pay off your creditors.
The repayment plan in chapter 13 bankruptcy will be executed through the court which means that you will make your payments to the court as per the repayment schedule.
The repayment schedule will begin even though the court has not yet heard it and approved of it.
People commonly filing for chapter 13 bankruptcy plan are unable to complete their payment plans which results in their cases being dismissed, allowing the creditors to resume efforts on collection of the debt or allowing the consumer to convert his bankruptcy to a chapter 7 bankruptcy.