As a Michigan resident who is considering filing for bankruptcy, there are many factors to consider first. What you settle on will depend on your priorities, what you want to get out of the bankruptcy, and other personal factors that are unique to your own situation.
Today, we’ll take a look at FindLaw’s reasons to file for Chapter 7 bankruptcy as opposed to Chapter 13 bankruptcy. First, the discharge of debt is swift. Generally speaking, it will happen 60 to 90 days after you file. Second, there is no repayment plan with Chapter 7. If you file for Chapter 13, you will still have to repay your debt and make a repayment plan.
With Chapter 7, there are no limits on the amount of debt you can discharge. Chapter 13 has a limit that you can either overshoot or undershoot. Chapter 7 allows you to keep income in the future, as the property acquired after filing is not part of the bankruptcy estate. There are some exceptions, however, such as property received from divorce settlements made before filing.
Finally, one of the most attractive things about Chapter 7 is the notion of having a fresh start. This will wipe away your personal liability for all of your discharged debt. Though some types of debts are not dischargeable, many are. For example, student loans are not dischargeable, but credit card debt is. Having that weight off your shoulders can be immeasurable.
If you wish to discuss more about filing for Chapter 7 bankruptcy, consider speaking with a bankruptcy attorney today.
