It is indeed most unfortunate situation to be under the state of debts and not able to pay them off within the stipulated time. Myriad reasons contribute to such an adversity, with the recession era being the prominent one in the recent times. The most plausible solution to get rid off such an affliction is to file for either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy under the guidance of a qualified Houston bankruptcy attorney.
Chapter 7 Bankruptcy
Sometimes also known as “liquidation” bankruptcy or “straight” bankruptcy, filing for Chapter 7 Bankruptcy indicates that in order to clear the debts, the business or one individual has intentions to sell all its assets, pay off the debts to the creditors and henceforth, stop all the business operations. Opting for such a procedure could involve considerable risks since it demands a hefty amount to apply for Chapter 7 Bankruptcy and the Houston bankruptcy attorney are also supposed to charge quiet a handsome fee to assist in such a cause. There is however a restriction on the number of times you can opt for Chapter 7 Bankruptcy and you can do it another time only after 8 years of your first filing. To rescue the debtors from its disadvantages, Chapter 13 Bankruptcy could prove to be much better solution.
Chapter 13 Bankruptcy
This is a repayment plan that requires the debtors to repay the concerned amount to the creditors within 3 to 5 years. It is a preferable option for the debtors who are in possession of costly assets such as certain movable property like car or immovable property such as home, which are not covered by exemptions. To file for Chapter 13 Bankruptcy, the debtor needs to submit a plan before the court that should contain a detailed information regarding the amount he proposes to pay to each of his creditors. As in the case of Chapter 7, this form of bankruptcy also accompanies a certain filing fee along with the additional cost for miscellaneous administrative works. To ensure that the Chapter 13 Bankruptcy petition be accepted, it would be a wise decision to seek the assistance of a Houston Bankruptcy attorney.