How can I choose the right bankruptcy plan?
Length of time involved
Experian reports that a Chapter 7 bankruptcy plan may be completed in as little as three months. A Chapter 13 plan, in contrast, can last up to 60 months. Payments are made on a regular basis to a trustee. The trustee then distributes the money to creditors until the term of the plan is complete.
Amount of debt and income
The amount of assets, liabilities and income that a consumer has can also impact the better choice of bankruptcy plan. In both Chapter 7 and Chapter 13 plans, debtors will provide detailed financial statements and related documentation to ensure that they meet the eligibility criteria of their requested plan.
The level of knowledge involved in how to properly create these plans is extensive and debtors are encouraged to work with an experienced bankruptcy attorney. Getting the right advice can help consumers make the right choices for their situations.