If you are considering filing for bankruptcy in Washington, you will probably already know that different bankruptcy filings result in different processes and consequences. If you are filing for bankruptcy as a private individual, you will likely be choosing between Chapter 7 bankruptcy and Chapter 13 bankruptcy.
Generally speaking, Chapter 7 bankruptcy involves the liquidation of assets, whereas Chapter 13 bankruptcy involves a payment plan over three to five years. If you want to minimize the assets that you lose as a result of bankruptcy, it is important to understand more about the assets you will be set to lose by filing for either bankruptcy filings.
Chapter 7 bankruptcy means that you will lose significant assets
Chapter 7 bankruptcy is ideal for those with a low income because it does not require repayments to be made. It allows a very fast process: It’s usually completed in a matter of months and often leads to the wiping away of all debts. However, filers lose all property other than exempt property.
Chapter 13 allows you to keep all property if you can afford the payment plan
If you don’t want to lose your property to bankruptcy, Chapter 13 bankruptcy can be a great option. However, the entire process will take between three to five years, and it will take a significant amount of willpower. Your debts will be reorganized, and you will need to use your wages to pay them off over time.
If you are confused about which bankruptcy filing is right for you, you must think carefully about your priorities and what outcome is most important to you.