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CHATTANOOGA, TN, April 22, 2015 /24-7PressRelease/ -- The Chattanooga bankruptcy lawyers, Clark & Washington, highlight the key differences between Chapter 7 and 13 bankruptcies. Making the decision to file for bankruptcy is a difficult one, but it is sometimes the necessary move when an individual's financial freedom is at stake. The main differentiating factor between these two common forms of bankruptcy is the way a person's debts are handled.
Differences Between Chapter 7 and Chapter 13 Bankruptcy in Chattanooga
In general, those looking to file for Chapter 7 are in a situation where they have no means or way to pay off their accrued debt. Typically speaking, it is reserved for individuals with low incomes or those who have endured a major financial setback (e.g. sudden unemployment, incurred medical expenses, loss of spouse or spousal income, etc.). Thus, the purpose of Chapter 7 bankruptcy is to wipe the slate clean so to speak, making the debt null and void, which thereby gives the filer financial breathing room.
Alternatively, Chapter 13 bankruptcy is ideally suited for people who are in a position to pay back their debts in a more structured manner. In essence, this type of bankruptcy initiates a court-ordered payment plan that provides the filer with a sense of freedom from hassling creditors. It acts as an extension of sorts that safeguards the person's credit while at the same time giving them leeway as far as repayment is concerned.
The Chattanooga bankruptcy attorneys at Clark & Washington have helped hundreds of clients with their bankruptcy questions. To schedule a free consultation, feel free to visit them at http://www.chattanooga-bankruptcy-attorney.com.
About Clark & Washington:
Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal Chapter 7 and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.
For more information, visit http://www.chattanooga-bankruptcy-attorney.com.
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