By: Darrell Castle
There are two chapters of individual consumer bankruptcy and they both do different things.
Which one is better for YOU depends on YOUR unique situation.
Are you behind on your house or car note and want to keep your property? Are you behind on credit card or medical bills and just want to get rid of that debt relatively quickly? Determining which chapter is best for you depends on the answers to these questions and more.
An experienced bankruptcy attorney can help you determine which chapter to file, but let’s touch on what they’re both used for and can accomplish.
Chapter 7 bankruptcy
Unsecured debts are debts that are NOT backed by collateral, like your credit card or medical bills. If you fall behind on these payments, there’s nothing your creditor can really take from you (besides your wages via a wage garnishment, which you can learn more about here.) https://www.darrellcastle.com/blog/posts/wage-garnishment-faq-common-memphis-bankruptcy-questions
Chapter 7 bankruptcy is good if you’re struggling with unsecured debt. By filing for Chapter 7, you can discharge that debt without paying any of it back. And the process is relatively quick, taking only a few short months.
Chapter 13 bankruptcy
Secured debts are debts that ARE backed by collateral. This includes your house and car. If you fall behind on these payments, the bank has the ability to take your property from you.
However, by filing for Chapter 13 bankruptcy, you can STOP the bank from taking your property by lumping all of your debt into an AFFORDABLE repayment plan. And then once the repayment plan is complete – which takes 3 to 5 years – then you’re free of that debt, your car is most likely paid off, you’re current on your mortgage and you’ve kept your property!
It’s no fun having debt you just can’t pay. And interest rates only make the debt worse. The stress and worry caused by thinking about how you’re going to pay your bills and make ends meet can become unbearable.
You don’t have to live enslaved to that debt. You don’t have to live the situation you’re in that was caused by a job loss, medical emergency or bad decision. You CAN have a fresh start. And that comes through a bankruptcy.
Our Memphis bankruptcy attorneys can help
For decades, Darrell Castle & Associates has practiced bankruptcy law in Memphis. We’ve helped people get out of all sorts of debt and onto a better life. And we can help YOU too.
Our team is very detailed and responsive, and that’s why our clients like us. Your case will be handled the RIGHT way because that’s what you deserve. You’re not just a case number, but you’re a real person with real problems. Problems we have the ability to help you with.
We also provide our clients FREE access to 7 Steps to a 720. This online course teaches you the tips and tricks the banks don’t want you to know about how to re-establish and rebuild your credit score to an A+ rating after a bankruptcy.
Those are some of the reasons we’ve received multiple Client Distinction Awards from Martindale-Hubbell. You’re in good hands here.
Want a free bankruptcy consultation?
If you’re struggling financially and want to talk to someone experienced about your options, then our FREE bankruptcy consultation is perfect for you.
Call (901) 327-2100 today to schedule your appointment. Or you can fill out the form to the right of this page to have someone from our office contact YOU.
If you want some more in-depth knowledge on the different types of bankruptcy, I’ve created a free report on each. Download “The Power of a Chapter 7 Bankruptcy” and “The Power of a Chapter 13 Bankruptcy” from my website today.