When it comes to the issue of filing bankruptcy, most people like to avoid the topic altogether. Things can get very iffy and sticky once the legalities start getting involved, and many people choose to remain uneducated about the process completely. If you are experiencing bankruptcy, it can be beneficial for you to educate yourself on different aspects of the process, including the differences between Chapter 7 in Tacoma Wa and chapter 13 types of bankruptcy. Here are a few tips to determine which route would be best for you.
Are You Eligible?
Many consider Chapter 7 in Tacoma Wa filing to be the best form because it essentially frees you from the majority of your debts, not just your land or home debt. However, many people who file for bankruptcy are not eligible for the chapter 7 process. If your average monthly income over the past 6 months is more than the average income for a household of your same size or your disposable income goes over a certain amount set by your state laws, then you will still not be eligible for chapter 7 processing.
Are You Able to Pay Back the Debt?
Essentially, the main difference in the two processes is that chapter 13 requires you to pay back all or a large portion of your debts. The bankruptcy lawyers will work with you to achieve a reasonable repayment plan that can work with your current debts and monthly income, but you will still be required to repay the debt. If you have any desire to do this or any ability to, then chapter 13 may be the best for you.
Do You Want to Keep Property?
With chapter 7 filing, you are required to give up your property aside from exemptions. However, chapter 13 allows you to keep your properties unless they are used as collateral at any point. If you desire to keep your property, then you want to stick with chapter 13.
As you can see, bankruptcy can be a messy and complicated procedure. Nobody likes talking about it and many who experience it tend to act like it isn’t happening at all. However, it is important for you to become educated about the different areas and options for you when filing.
