At the Law Firm of Alva Wesley-Thomas & Associates, our experienced bankruptcy attorneys are committed to sharing accurate information about the bankruptcy process. Many of our clients want to know about the differences between Chapter 7 and Chapter 13 bankruptcy. Our Houston attorneys have prepared a brief overview of the major differences:
| Chapter 7 | Chapter 13 |
| Wipes out debts you cannot afford to pay | Wipes out some debts and helps you repay others in an affordable payment plan |
| Lets you keep your house and car if you are current or can get current on your payments | Lets you keep your house and car even if you are not current on your payments |
| Gives you a discharge – a document wiping out your debts – in about three months | Gives you a discharge after you complete a three- to five-year repayment plan |
| Quicker in getting to the outcome | Quicker to put a stop to emergencies like foreclosure, garnishments and lawsuits |
| Wipes out lawsuit judgments and finance company liens on household goods | Depending on the details of your plan, may wipe out or reduce judgments and liens |
| Lets you keep all of your assets covered by Texas’ homestead exemption law | Lets you keep all of your assets |
The bottom line is that Chapter 7 is clearly better for some people, Chapter 13 is clearly better for others, and others could benefit from either and should weigh the costs and benefits. And if you are in serious trouble with debt, chances are that one of these options is right for you.
Missouri City, Pasadena, Baytown, Humble & Cypress · Chapter 7 and 13 Attorneys
Do not believe the myths spread by creditors or misleading information from friends and relatives who do not understand how bankruptcy works. Talk to an experienced bankruptcy lawyer and learn whether Chapter 7 or Chapter 13 is the best way to deal with your specific situation.
To schedule a free consultation, contact us today at 713-278-0800 or by e-mail. We have a convenient office location in Houston, Texas, and evening and weekend appointments are available.