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Different bankruptcy options require different qualifications

On Behalf of | Nov 29, 2018 | Chapter 7 and Chapter 13 Bankruptcy, Firm News | 0 comments

Not everyone knows that there are different options for individuals who wish to file for bankruptcy. “Bankruptcy” is actually a set of different legal paths that may allow individuals to relieve themselves of their debts and help them start their financial lives with fewer obligations. Before a Colorado resident throws themselves into the bankruptcy courts, they should be sure they understand the different requirements that they will face for their different bankruptcy options.

For example, Chapter 7 bankruptcy does not allow individuals with certain levels of income to use it protections to become debt free. Individuals who have enough money to pay off some or all of their debts must use Chapter 13 bankruptcy and its reorganization scheme to work through their outstanding loans.

Individuals who have previously filed for bankruptcy may be barred from pursuing either Chapter 7 or Chapter 13 if their prior discharge was too soon in the past. Dismissals of prior bankruptcy filings can also require individuals to wait before attempting to get their bankruptcy matters back into the courts.

Many circumstances will dictate whether a person’s interests and financial needs will be better served in Chapter 7 bankruptcy or Chapter 13 bankruptcy. Their level of income, the type and nature of their debts, as well as their assets and resources, to make payments should all be considered before committing to a particular form of personal bankruptcy. To get the best possible information about how best to approach a new bankruptcy filing, a person can choose to seek the counsel of a bankruptcy attorney in their own community.