Many people who find themselves struggling with debt can qualify for relief under the bankruptcy laws. Individuals may find a solution to their problems with either a Chapter 7 or Chapter 13 bankruptcy.
In many ways, these two options are similar:
- Both will stop garnishments and judgments
- Neither will eliminate student loans, child support obligations or court fines
- Both can help with tax debt (speak with an Iowa bankruptcy attorney for details)
- Both allow you to keep your home or car as long as you continue to make payments
- Both have exemptions that allow most people to retain all of their assets
- Both area available only once every eight years
There are differences, however.
You may qualify for a Chapter 7 bankruptcy if you simply can’t pay back your debts and/or if you’re experiencing negative cash flow. In Chapter 7 bankruptcies, unsecured debts are discharged in ninety days.
You may qualify for a Chapter 13 bankruptcy if you have the ability to repay some of your debt according to the law. Chapter 13 bankruptcies establish a payment play that will allow you to repay a portion of your unsecured debt at 0% interest over a period of up to five years. It can be used to catch up on arrearages on homes and may stop foreclosure.
You will want to discuss your specific situation with an attorney to determine whether a Chapter 7 or Chapter 13 bankruptcy is right for you.
Call or contact Marks Law Firm to set up a free, no obligation consultation. We’ll listen to your story, discuss your situation and help you to determine how you can best deal with your debt situation.