Most people – if they are able to choose between Chapter 7 or 13 – elect Chapter 7 bankruptcy. Chapter 7 takes much less time and immediately liquidates almost all debts without requiring them to pay creditors back.
- Chapter 13 bankruptcy will reduce the balances of your secured debts to the fair market value of your collateral. So, for example, if you owe $20,000 to your auto finance company, you’ll be able to reduce the balance of your car loan to equal the current value of your car, which could be much less – more like $5,000;
- Chapter 13 bankruptcy lets you make up for missed payments on your mortgage, car loans or other secured debts. By doing so, you can keep your collateral and possibly prevent an repossession or foreclosure; and
- Chapter 13 bankruptcy will allow you to operate a business while you are in bankruptcy, unlike Chapter 7 which usually requires you to close your business.
If you live in Colorado or Oregon, and you’re considering filing Chapter 13 bankruptcy, contact our offices today. Consultations are 100% free, so let our experienced team of professionals help you find a fresh start.