If you’re planning on filing for a Tempe bankruptcy, you should know that one of the most important decisions you will have to make is which type of bankruptcy to file for. Many people choose to file for Chapter 7 bankruptcy, which is known as liquidation. This is usually considered a “good” type of bankruptcy, since it may allow the filer to keep some of his or her assets. However, other assets that exist are sold off in order to repay the filer’s debt. Keep in mind that this type of bankruptcy will stay on your credit for ten years, during which time it can be difficult (but not impossible!) to secure credit. This type of bankruptcy, however, is not right for every person and, furthermore, every person is not eligible to file for Chapter 7 bankruptcy.
Another very common type of Tempe bankruptcy is Chapter 13 bankruptcy. This type of bankruptcy is known as reorganization. It gives you an extended period of time, generally three to five years, in which to pay your debts. You create a bankruptcy plan that details how you will do this. Despite the fact that you still end up paying off your debts, the filing will remain on your credit report for seven years and, as with Chapter 7 bankruptcy, not everyone is eligible to file.
As you can see, there is a lot to think about when filing for bankruptcy, and it’s nearly impossible to make sense of it all on your own. You need a trusted, experienced Tempe bankruptcy attorney on your side and working for you. Make sure you contact the professionals at Dault Law. They can help you to make the best possible decision for your financial future.