Bankruptcy is something many people turn to when they are experiencing major financial problems with debt, and many people find that Chapter 7 seems to be the more favorable choice when compared to Chapter 13. While there are times when Chapter 13 is a more advantageous option for some people, here are the top three reasons many people prefer Chapter 7 over Chapter 13.
It is faster
One key difference between Chapter 7 and Chapter 13 is the amount of time it takes from the point in which you file the documents until the point where the court discharges the case. For a Chapter 13 case, it will take years, as there is a repayment plan involved. If you use Chapter 13, you can expect the case to take around five years from start to finish. With a Chapter 7 case, you will get through it much faster. Most cases result in a discharge within less than one year from the time when a person files for Chapter 7. If you are looking for the fastest way to receive debt-relief, Chapter 7 is often the best option.
It offers a discharge of debts instead of a repayment plan
The second reason people prefer Chapter 7 over Chapter 13 is the discharge of debts they receive in Chapter 7. In Chapter 13, you will be required to repay most of your debts over a period of time, and this involves a repayment plan. Chapter 7 does not require a repayment plan of any kind. Instead, it forgives qualifying debts and leaves you responsible to pay any remaining debts on your own.
It requires fewer court hearings
Going to court not only takes time, but it is also something that intimidates a lot of people. After filing a Chapter 7 case, you will likely only have to attend a single court hearing, which is called a meeting of the creditors. While there is a very small chance you may have to attend one more court hearing, it is unlikely you would ever have to attend more than two. In Chapter 13 cases, you will likely have to attend numerous court hearings to meet with your bankruptcy trustee, and these meetings can be intimidating to many people.
If you think that filing for bankruptcy might be the best solution for your debt issues, you should contact a bankruptcy lawyer to find out more about your options.
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