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Day: October 6, 2021

What Bankruptcy Wipes Out Debt?

If you are drowning in debt and considering bankruptcy, you may be wondering which form helps you eliminate debts. When many people think of going through this financial legal process, they think about completely wiping out debts. This is sometimes the case, but not always.

When it comes to filing for bankruptcy, individuals have the choice between Chapter  7 and Chapter 13.  If wiping out your debt is a priority for you, consider this information while thinking about questions to ask your Rockville bankruptcy lawyer during an upcoming consultation.

Chapter 7 Wipes Out Debts, Sometimes With a Cost

As long as your income qualifies, Chapter 7 can be a solid choice for wiping out debts. With that said, it can also come at a cost, depending on your assets. For example, if the value of your assets is too high, you may have to give up certain possessions as part of your discharge.

Chapter 13 Can Wipe Out Debt After Years

With Chapter 13, wiping out debt works differently. Instead of immediately eliminating debts and possibly giving up some assets, debtors and credits work out an agreement to repays debts over a three-year or five-year plan. After you pay all