Chapter 13 Bankruptcy
Although Chapter 7 bankruptcy is the most commonly filed bankruptcy in the U.S. today, it does not fit all financial situations. This is mainly due to the fact that Chapter 7 bankruptcy is designed for those who do not have many assets that are at risk of repossessed or liquidated. For individuals who are at risk of losing these types of assets to an overwhelming amount of debt, filing for Chapter 13 bankruptcy is usually the recommended course of action.
Unlike Chapter 7 bankruptcy, which is designed both to discharge a large portion of one’s debt to achieve a fresh financial start, Chapter 13 bankruptcy is a reorganization and WRITEOFF of debt. Most of the time, filing Chapter 13 does NOT mean that you repay all your debt — it is NOT a debt “consolidation.” This process is designed to help you save a home that is in foreclosure or protect assets that you would lose in a Chapter 7 bankruptcy. It is also used to fix IRS tax debt problems.
If you find yourself in a situation of unmanageable debt even with a sufficient disposable income, it may be time to consider filing for Chapter 13 bankruptcy before you find yourself even deeper in debt. Our Denver bankruptcy experts are ready to assist you with any questions you may have, so don’t hesitate to contact us to schedule a consultation today.