Both Chapter 7 and Chapter 13 bankruptcies can help you achieve debt relief, but in different ways. Chapter 7 discharges credit card debts completely. You are no longer obligated to repay them once the filing is complete. In a Chapter 13 filing, credit card companies are forced to accept a repayment arrangement based on what you can pay rather than what you owe. In a Chapter 13 repayment plan, you will often pay back far less than the original debt amount.
The Law Offices of Michael S. Schwartz can explain in detail the difference between Chapter 7 and Chapter 13 and evaluate your situation to help determine the best option for you.
Some people find that credit counseling is a good alternative to bankruptcy in their situation. In credit counseling, the credit card companies agree to work out an arrangement to help you pay back the debts, sometimes lowering the interest rate in favor of a longer payback period. However, unlike in Chapter 13 bankruptcy, entering into a repayment arrangement is completely voluntary and depends on the good nature of credit card company. In addition, debtors will end up paying a lot more towards debt through the credit counseling program than by filing bankruptcy.
Our firm will help you decide what option to pursue. While there are clear advantages to filing bankruptcy, we will refer you to credit counseling if it better serves your financial needs.
For a free consultation with a bankruptcy lawyer at the Law Offices of Michael S. Schwartz, call 215-396-7900 or send us an e-mail.
We have offices in Southampton, Havertown and Perkasie, Pennsylvania, to serve you.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.