Chapter 13 and Chapter 7 bankruptcies

Posted by on Dec 22, 2013 in Blog, Featured | Comments Off on Chapter 13 and Chapter 7 bankruptcies

A difference between Chapter 13 and Chapter 7 bankruptcies is what can be gotten rid of, as far as debt.  I help my clients see what’s best for them.  “Dan” came to me with a common story.  He was able to pay his house and car and his credit cards, but he was required in his divorce decree to also pay a good chunk of his ex-wife’s credit card bills.  Dan figured he’d be paying them off for the next 25 years, making minimum payments, which was all he could afford.  In a Chapter 13 bankruptcy, he got what we call a “super discharge.”  He was able to get rid of not only his credit card debt, but also his ex-wife’s, and he was able to do it in only three years.  He wanted to be able to comfortably pay his ongoing living expenses and not have to live paycheck to paycheck.  Talk to a bankruptcy attorney if you find yourself in that situation.