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Chapter 13 Bankruptcy Legal in Metairie, Louisiana
If you have accumulated a large amount of debt but are still working and earning an income, one option for financial relief may be to file for a Chapter 13 bankruptcy. Unlike a Chapter 7 bankruptcy, filing for a Chapter 13 bankruptcy can allow you to keep some of your property. If you have questions about filing for a Chapter 13 bankruptcy in Metairie or other options for debt-relief, call our Metairie bankruptcy attorneys directly today for the help and support you need.
What Is a Chapter 13 Bankruptcy?
There are two types of bankruptcy that are most commonly filed by individuals: Chapter 7 and Chapter 13. Both of these bankruptcy types will result in the automatic stay going into effect at the moment that you file — the automatic stay is an immediate hold on creditors’ right to continue to collect on debt while the bankruptcy claim is pending. Additionally, both types of bankruptcy can result in some debts being discharged.
The primary difference between the two bankruptcy types is that a Chapter 7 bankruptcy is a liquidation bankruptcy and a Chapter 13 bankruptcy is a wage-earner’s bankruptcy. Under the former, a person will need to liquidate their assets, and must be of limited financial means in order to qualify; under the latter, a person will enter into a repayment plan that lasts for three to five years. At the end of the repayment plan, remaining debts will be discharged.
What Are the Benefits and Disadvantages of a Chapter 13 Bankruptcy?
The biggest disadvantage of filing for bankruptcy is that bankruptcy will significantly impair one’s credit score, making it very difficult to secure a loan or a line of credit, buy a home, get approved on a rental application, or even get a job, for years to come. One of the advantages of filing for a Chapter 13 rather than a Chapter 7, though, is that in a Chapter 13 bankruptcy, the bankruptcy filing will only remain on one’s credit report for seven years; it remains for 10 years following a Chapter 7 bankruptcy.
Another benefit of filing for a Chapter 13 bankruptcy is that usually one can keep more of their assets, such as a home.
Are All Debts Dischargeable?
One common mistake that people make — and one of the reasons that it’s so important to work with a Metairie bankruptcy attorney — is assuming that all debts are dischargeable in a bankruptcy filing. However, while consumer debts, like credit card debt, are dischargeable, things like student loan debts, child support debt, and alimony debts are not dischargeable.
Talk to a Metairie Bankruptcy Attorney Today
If you are thinking about filing for bankruptcy but don’t know where to start, consult with an experienced Metairie bankruptcy attorney. An attorney can answer your questions about bankruptcy in general and the different types of bankruptcy, and guide you in filing for your Chapter 13 bankruptcy. Consultations are offered free of charge. Reach a bankruptcy attorney in Metairie today to get started.
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