Chapter 7 Or 13: Which Should You Choose?
At Hanis Irvine Prothero, PLLC, we help Washington clients understand their options for getting out of debt. Through years of experience, seminars and training, attorney Brian Hanis has developed the detailed knowledge necessary to accurately evaluate each situation and craft an effective plan of action.
If you are like many of our clients, you first want to determine if bankruptcy really is the best way for you to become debt-free and financially secure again. We will sit down with you and discuss the pros and cons as they apply to your particular situation. If filing bankruptcy is the right choice for you, we can then counsel you on which type of bankruptcy relief is available to you.
How Chapter 7 Differs From Chapter 13
Chapter 7 and Chapter 13 bankruptcy have some things in common. They will both put an immediate halt to creditor harassment, wage garnishment and home foreclosure.
The greatest difference is that Chapter 7 is available only to those with limited assets and income, and it requires you to “liquidate” or give up any assets that are not protected by state or federal exemptions. It is particularly effective, however, for erasing credit card debts, medical bills and other unsecured debts.
Chapter 13 is typically the best choice for those who want to protect their homes, cars and other assets. It involves creating an interest-free repayment plan that lasts three to five years. After that, any remaining debts will be discharged.
Exploring Additional Options
If bankruptcy is not appropriate for you, we can work with your creditors to negotiate a debt settlement agreement. In every case, Hanis Irvine Prothero will shoulder the full burden of drafting any necessary letters, preparing other required documentation and attending any hearings or meetings.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.