Chapter 7 vs. Chapter 13
Work with Our Trusted Charlotte Attorneys
The differences between Chapter 13 and Chapter 7 begin with what is called
a means test. This test and its many calculations can be complicated and
often require the aid of an experienced
bankruptcy attorney to determine a person's eligibility to file, especially if
net mortgage income calculations are involved. Our Charlotte bankruptcy
lawyers at Saffa Law Group have the right tools to help figure it all
out for you. We help clients throughout the Charlotte area with these matters.
Chapter 7 also differs from Chapter 13 in that the debtor will not need
to make monthly payments to a trustee.
Chapter 13 bankruptcy is essentially the reconfiguration of one's debts to facilitate paying
off creditors over a period of 3-5 years. A positive result of
Chapter 7 bankruptcy is that, usually within 3-4 months, the debtor will be able to receive
a discharge on any and all dischargeable debts. Another advantage is to
be granted the choice to sign a reaffirmation agreement allowing a debtor
to continue paying a mortgage on their home or car loan, for example.
Many of our clients have opted for Chapter 13 bankruptcy in order to have
the chance to pay down their debt on better terms. This can include the
added benefit of having little to no interest with their payments. The
option for Chapter 13 is typically suggested only to debtors who make
a steady income. Filing for Chapter 13 requires submission of a repayment
plan proposal. Having the help of a professional Charlotte bankruptcy
lawyer in drawing up your plan for repayment can help achieve the best outcome.
Call Saffa Law Group today!
Why hire Saffa Law Group?
When filing Chapter 7 or Chapter 13 bankruptcy, our lawyers handle 3 main
types of debts / claims:
- Secured debts
- Unsecured debts
Priority claims (such as most IRS taxes and the costs of bankruptcy proceedings)
are those granted a special status by the bankruptcy law. Secured claims
(such as home mortgages, car loans, and furniture loans) are those for
which the creditor has the right to take back certain property, if the
debtor does not pay the underlying debt. Unsecured claims (such as credit
cards and medical bills) are those which the creditor has no special rights
to collect against particular property owned by the debtor such as credit
The discharge of all eligible debt concludes the process of bankruptcy.
In regards to a Chapter 7 case; this may occur within 4 months of filing.
However, in Chapter 13 cases, this discharge of debt will occur within
3 to 5 years of filing, when the payments are complete. Both types of
bankruptcy have their pros and cons; the good news is that a skilled Charlotte
bankruptcy attorney from our firm is available to help you sort it all
out and assist you in making the right decision for yourself.
Schedule your free case review with our firm today! Call us at (704) 710-8182.
We serve clients throughout the City of Charlotte, Town of Cornelius, Town
of Davidson, Town of Huntersville, Town of Matthews, Town of Mint Hill,
Town of Pineville, Town of Stallings, Buford, Charlotte, Goose Creek,
Hembry Bridge, Indian Trail, JAARS, Jackson, Lake Park, Lanes Creek, Marshville,
Marvin, Matthews, Mineral Springs, Mint Hill, Monroe, New Salem, Sandy
Ridge, Stallings, Unionville, Vance, Waxhaw, Weddington, Wesley Chapel,
Wingate, Concord, Harrisburg, Kannapolis, Midland, and Mt. Pleasant.