Differences Between Chapter 7 and Chapter 13
Working to Help Clients Understand Bankruptcy
There are important differences between Chapter 7 and Chapter 13 bankruptcy. While both forms of bankruptcy help consumers and small business owners, Chapter 7 is in many cases more desirable simply because it allows you to eliminate unsecured debt, such as credit cards and medical expense.
At Acosta Law in Houston, Texas, our attorney has taken on more than 15,000 bankruptcy cases since 1996, and helped people from all walks of life find solutions to the most complex financial problems. We give you the information you need to make the right decisions.
Empowering Clients With Knowledge and Experience
Often the most important tool to taking on complex financial issues is knowledge: knowledge of the tools and resources available through bankruptcy to every individual in Houston and across the nation. Unfortunately, that information can be hard to come by without a dependable advocate on your side.
We provide guidance for clients seeking to understand the available forms of bankruptcy:
- Chapter 7 — A liquidation solution that eliminates most unsecured debts, such as credit cards and medical expenses. Prior to the 2005 bankruptcy reform, this was the most desired form of bankruptcy as it allowed individuals to completely eliminate much of their debt. Since reform, there are qualifications an applicant must pass before being allowed to file for Chapter 7. It is very important to work with an experienced lawyer that may be able to help you organize a successful application for Chapter 7.
- Chapter 13 — Chapter 13 restructures your debt and requires that you pay a portion of that debt over the life of the bankruptcy, which allows you to sometimes retain a larger portion of your property. While Chapter 13 bankruptcy also has certain qualifications, they are generally less restrictive than Chapter 7, primarily because the debtor will be required to pay against existing debts rather than having the advantage of debt elimination.
In most cases we work to help clients get qualified for Chapter 7 bankruptcy. There are a wide range of exemptions and strategies that a knowledgeable attorney can employ to help people protect homes, cars and important property, meaning that with a Chapter 7 bankruptcy you may get all the benefits of a fresh start without the damaging loss of property.
Get the Knowledge You Need
If you are facing a debt of financial crisis, you need to know what your options and rights are. Contact our Houston bankruptcy office online or by phone at 713-980-9014 to schedule a free consultation to review your situation and get the information you need to make an informed decision about your future.