Wisconsin consumers who are struggling with debt know how stressful and difficult it can be to deal with unpaid balances and pressure from debt collectors. If you are facing this situation yourself, you may understand that bankruptcy could offer you a way out. However, the decision to go ahead and file is not an easy one to make.
If you are considering the benefits of consumer bankruptcy, it could be helpful for you to understand more about this process and the right choice for you. The first step of this process is to learn about the differences between Chapter 7 and Chapter 13 bankruptcies and the eligibility requirements for each.
What you should know about Chapter 13?
Chapter 13 bankruptcy is a beneficial choice for individuals who are facing unmanageable debt, including those who may not qualify for Chapter 7 bankruptcy. You may consider this option if any of the following apply to you:
- You are currently facing threats of repossession.
- You wish to keep certain assets that you may have to liquidate in Chapter 7 bankruptcy.
- A significant amount of your debt may not be eligible for discharge in Chapter 7 bankruptcy.
Chapter 13 could be the right choice for you if any of the above apply to you or you have a co-debtor on some of the balances you owe.
What should you know about Chapter 7?
Chapter 7 is a popular choice for individuals with a lot of debt because it only takes a period of a few months to complete. This could be the right choice for you if the following apply to your situation:
- You do not have the financial capabilities to make payments on a debt repayment plan.
- A large majority of your debt is eligible for discharge.
- You are looking for an option that will provide quick protection from the efforts of creditors and debt collectors.
Not everyone is eligible for Chapter 7. If you do not qualify, you still have the option to seek the protection of Chapter 13 bankruptcy.
Knowing the right choice for you
If you are considering this step, you may find it prudent to seek an evaluation of your case in order to understand the right choice for you. No two financial situations are the same, and the most appropriate option for you will depend on the details of your individual situation. Either Chapter 7 or Chapter 13 could offer you the chance to achieve a better financial future, and you can start this process simply by reaching out for help.