The world of bankruptcy law can be confusing, especially if you are already under a great deal of stress due to your precarious financial situation. In the end, most people in Colorado who decide to file for bankruptcy will choose between Chapter 7 and Chapter 13 bankruptcy. However, there are some differences between Chapter 7 and Chapter 13 bankruptcy that are worth noting, so you can make an educated decision about which option, if any, is right for you.
If you want to resolve your bankruptcy matters quickly and are worried about how much it may cost you, you may want to consider Chapter 7 bankruptcy. In general, Chapter 7 bankruptcy is more efficient and less expensive than Chapter 13 bankruptcy. Chapter 7 is known as a “liquidation” bankruptcy and can usually be settled in a matter of months. Through Chapter 13 bankruptcy, on the other hand, the debtor will enter into a repayment plan that lasts anywhere from three to five years.
That being said, not everyone qualifies for Chapter 7 bankruptcy. To qualify for Chapter 7 bankruptcy, a person must have a limited amount of income and assets. If your income is too high, Chapter 7 may not be a possibility. In addition, if you filed for Chapter 7 at some point during the past eight years, you are not eligible to file for Chapter 7 again. But, in either of these situations, Chapter 13 bankruptcy may still be an option. Chapter 13 bankruptcy may also be preferable if you wish to keep your house.
In the end, deciding what bankruptcy option is best for you is a personal decision. However, since it could affect the trajectory of your life for years to come, it is not a decision to be made lightly. At the Bruntz Law Firm, we do our best to advise our clients on their various options for a fresh financial start. We believe in treating each of our clients’ situations as the unique cases they are. With personalized legal attention, those who are considering bankruptcy can make informed decisions that are in their best interests.