Perhaps one of the toughest ones
you’ll ever have to make is whether or not to file for bankruptcy. While it’s a
great way to discharge unsurmountable debt, there are many considerations you
should keep in mind before filing a petition.
Should I File for Chapter 7 or Chapter 13 Bankruptcy?
In Chapter 7 bankruptcy, most of
your unsecured debt like unpaid credit card bills will be discharged. Secured
debt, such as mortgages or car loans, won’t be forgiven, though. To have these
loans to be dismissed, you’ll have to return your house or vehicle to
creditors.
Chapter 13 bankruptcy, on the
other hand, restructures your loan so that you can repay a portion of it over
the course of three to five years. Unlike the latter, this may help you hold
onto your properties.
