When Chapter 7 Bankruptcy Is Better Than Chapter 13 Bankruptcy
Get Your Free Case Review

Chapter 7 Bankruptcy Has Some Significant Advantages Over Chapter 13 Bankruptcy

Most people who file for bankruptcy choose Chapter 7 bankruptcy because it’s fast, effective and easy to file, and it doesn’t require payments over time.

Advantages Of Chapter 7 Bankruptcy

A typical Chapter 7 bankruptcy case is opened and closed within three to six months, and the person filing emerges debt-free except for a mortgage, car payments and certain types of debts that survive bankruptcy, such as student loans, recent taxes and unpaid child support.

Although you can lose property in Chapter 7 bankruptcy, most filers don’t. Bankruptcy lets you keep most necessities – if you have little to begin with, chances are good you’ll be able to keep all or most of your property (unless you pledged the item as collateral for a loan).

However, not everyone is eligible to use Chapter 7 bankruptcy. If your income is sufficient to fund a Chapter 13 repayment plan, after subtracting what you’ll spend on certain allowed expenses and monthly payments for child support, tax debts, secured debts (such as a mortgage or car loan) and a few other types of debts, you won’t be allowed to file for Chapter 7 bankruptcy.

Drawbacks Of Chapter 13 Bankruptcy

Probably the main reason most people prefer Chapter 7 bankruptcy is that it doesn’t require you to repay any portion of your debts, as Chapter 13 bankruptcy does. And if you use Chapter 13 bankruptcy, you must complete the entire three- to five-year repayment plan in order to have your remaining debts discharged (unless the court lets you off the hook early, for hardship reasons). The majority of those who file for Chapter 13 bankruptcy don’t complete their plans, so filers run a very real risk that their debts won’t ultimately be discharged.

Despite this major potential drawback, there are some good reasons why people who are eligible for both types of bankruptcy choose to use Chapter 13.

– LEGAL SERVICES & RESOURCES –

– Why Hire Nicolet Law? –

Get An Experienced Lawyer On Your Case

We’ve helped thousands of clients with a wide range of legal needs. Let us put the skills and experience we’ve gained along the way to work for you!

Get Our App!

Get our convenient, secure app to
send us legal documents and pay your bill. Available on the App Store and Google Play.

Download the Nicolet Law Office app from the App Store to conveniently send documents and issue payments to our attorneys.
Nicolet Law clients can conveniently send legal documents and issue payments through our secure app. Get it on Google Play.

More Than

Million Recovered for our clients

Over

Clients Helped

More Than

Years In business

Over

Years of Combined Experience

What Our Clients Say About Us

powered by BirdEye

Awards & Recognition

Our peers and independent third-party organizations have recognized the hard work and dedication we put into every case. This has led to numerous awards and accolades.

From Our Blog

Winter Driving in the Midwest

It is that time of year again. Winter driving conditions in the Midwest can change on a daily basis. Unfortunately, many...

Minnesota Traffic Fatalities Rising Despite Quieter Roads

Despite fewer people on the roads due to COVID-19, Minnesota is reporting higher than usual traffic fatalities. State...

5 Post-Accident Mistakes Victims Make When Talking to Insurance Companies

In the wake of a car accident, victims tend to be scared, overwhelmed, and unsure of what to do or say. Unfortunately,...

Halloween Safety Tips

There is no doubt that Halloween is going to look a little different this year. Typically enjoyed by people of all ages...
×

PLEASE NOTE: To protect your safety in response to the threats of Covid-19, we are offering our clients the ability to meet with us in person, via telephone or through video conferencing. Please call our office to  discuss your options.