There are times when you get frustrated with work or finances that it becomes difficult to keep up with your bills and expenses. Most of these issues may be as a result of job loss or personal events such as divorce or death. You will then realize that credit card and mortgage payments suddenly become overwhelming and difficult to keep up with.
If you are experiencing this kind of life drama, the best decision is to file for bankruptcy. It can be a very good solution and strategy for getting back on track with personal finances and getting rid of medical debts and credit card debts. In this case, there are two types of bankruptcy you can go for to achieve the best results. They are the Chapter 7 and 13 bankruptcy. However, it is worthy to note that the processes involved are not easy. It is advisable that you talk to a bankruptcy attorney who is capable of handling the complicated papers involved as well as offering advice on how bankruptcy can affect your credit score along the line.
In the next section of this article, we will discuss the benefits of the different types of bankruptcy and why they are important in the elimination of debts.
Benefits Of Choosing Chapter 7 And 13 Bankruptcy
The good thing about Chapter 7 bankruptcy is that it provides complete elimination of unsecured debts. Debts such as loans, credit card, and medical bills will be eliminated. This type of bankruptcy also stops wage garnishment, collection of personal loans, collection of judgments, and collection calls.
On the other hand, Chapter 13 bankruptcy gives homeowners adequate time to repay their loans. This time is agreed by the court based on your income, and it helps prevent any form of foreclosure or repossession.
There are other benefits of chapters 7 and 13 bankruptcy. One of these benefits is the removal of all kinds of liens that may be attached to your account. For instance, filing of chapter 13 bankruptcy stops your lender from foreclosing on your home as long as you have been given time to repay your missed payments.