If you are drowning in debt, you may be considering bankruptcy. In this case, you are not alone. The truth is, thousands of Americans file for bankruptcy every year. Doing so can be the best option for numerous individuals who are facing financial challenges.
When thinking about bankruptcy, many people wonder which chapter they should file. For example, a popular question is, “Is one better than the other?” The answer depends on each’s unique circumstances, so there is no one-size-fits-all. Consider these questions for a better idea which chapter may be best for you.
When you first visit bankruptcy law offices in Rockville Maryland, one of the first questions that your attorney will want to know is how much your income is. If you want to discharge your debts through Chapter 7, there is an income limit to qualify. Check with your state laws to see what it is for you.
Another thing to consider is what you want to do. After looking at your debt, income and asset situation, does it make more sense to liquidate or to reorganize? For many people, liquidation is unnecessary because debts are too low, however, that is not always the case. Also, if you have valuable assets that are important to you, Chapter 13 might make more sense.
When making an inventory of all of your assets, what is the total value? If it is within the allowable state or federal exemptions, you may be able to keep a significant portion of your belongings. However, if your assets’ value far exceeds exemption limits, you may have to give some up if you choose to file Chapter 7.
If you are trying to figure out which bankruptcy is better, these questions can help you think. Either way, you are on the path to improving your financial future!