Richard J. Shurtz, Attorney at Law

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Is Chapter 13 the best option for bankruptcy?

There is no universal solution for debt relief for Washington residents, but, instead, there are a myriad of options from which consumers with enormous amounts of debt can choose. For many debtors who are struggling to make even the minimum payments and must choose between which bills to pay, bankruptcy is often an appropriate choice to make. However, there are two main types of consumer bankruptcies -- Chapter 7 and Chapter 13 -- and individuals generally only qualify for one of them.

Typically, Chapter 13 bankruptcies are reserved for those who otherwise do not qualify for a Chapter 7. However, there are a great number of advantages to filing a Chapter 13, including the ability to catch up on payments. For some people, this could mean the difference between foreclosure and keeping the home in which they have raised their children.

Chapter 13 also allows filers to retain ownership of more valuable assets than a Chapter 7 filing, which is why some debtors might find it to be a more favorable choice. Ultimately, the decision on which type of bankruptcy to file usually comes down to the means test. If an individual does not pass the means test, he or she will likely have to file for Chapter 13 unless the court approves a request to file for a Chapter 7.

We understand how overwhelming it can be when creditors refuse to stop calling and bills are overflowing the mailbox, but there are solutions out there. Our Washington clients who need to file a Chapter 13 bankruptcy benefit from our careful guidance based on years of experience in the field. If you are still feeling unsure about exactly how a Chapter 13 bankruptcy might help your financial situation, please visit our website to read more.

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