Making the choice to file for consumer bankruptcy is not easy. If you are facing this decision, it is likely because you are struggling with overwhelming debt and have no hope of paying it back without help. For many Wisconsin consumers, this is a reasonable way to make creditor harassment stop, deal with certain types of debt and obtain a better financial future.
Deciding to move forward with a bankruptcy filing is only the first step. You will then have to decide if you will file for Chapter 7 or Chapter 13 bankruptcy, which are the two most common options. There are distinct differences between these two chapters, and the right choice depends on the details of your financial situation and other factors.
Is Chapter 7 right for you?
Chapter 7 bankruptcy is a popular choice for many consumers because it only takes a matter of months to complete. This type of bankruptcy is an option for those who will be unable to keep up with a bankruptcy repayment plan or who have large amounts of unsecured debt.
There are strict eligibility requirements for Chapter 7 bankruptcy. For instance, the means test will look at your debts, assets and your other financial details. If you learn that you are not eligible for Chapter 7, Chapter 13 bankruptcy is an option for you.
Is Chapter 13 right for you?
Chapter 13 bankruptcy is not right for everyone, but it could be the optimal choice for you if you are facing a lot of secured debt. This type of bankruptcy filing is for those who are able to make payments according to a bankruptcy repayment plan. This option takes longer to complete, but it can help you with specific difficulties, such as stopping the foreclosure of your home and the repossession of your vehicle.
Making the right choice for your future
Bankruptcy offers you relief from constant creditor contact and collections efforts. It also offers you an organized way to deal with your debt problem and potentially secure a better financial future for yourself and your family.
A complete assessment of your case can help you see if filing for bankruptcy will be the best way forward for you. With the help of an experienced attorney, you can take the right steps, make the smartest choices and make decisions that are good for your long-term interests.