Sometimes, paying credit card bills feels like you are fighting an out-of-control fire. You put out one flame, and suddenly another pops up. Eventually, you get tired and want to get away from these flames.

However, can you really escape credit card debts without paying? Technically, yes you can but realistically we’re saying no you cannot. It is one of the reasons why people consult with a Virginia Beach Chapter 13 bankruptcy law firm. The Attorney at Hampton Roads Law Firm of John W. Lee, P.C serving Hampton Roads, Virginia understands how frustrating it is to deal with piles of bills you cannot pay.

The Attorney at the Hampton Roads Law Firm of John W. Lee, P.C have the expertise to help you through the bankruptcy process. You don’t have to worry about it, as Chapter 7 and Chapter 13 have a way to save you in many aspects. Just check out what chapter 7 and chapter 13 can do for you.

What Do You Get Out of a Chapter 7 or Chapter 13 Bankruptcy?

Chapter7 permanently removes most types of debts without having any repayment. On the other hand, Chapter 13 allows repayments for –

  • Mortgages loan arrears
  • Unsecured creditors
  • Medical bills
  • Taxes
  • Car loans

Many other debts use a court-enforced repayment plan. You can also save money using a third-party escrow account with the payment in addition to upfront costs before a settlement company undertakes the settlement of credit card debts. Companies do not deal with auto repossessions, taxes, foreclosure debt, payday loans, and many others. Filing for bankruptcy instigates an automatic stay.

The creditors have to cease all pending lawsuits, collection calls, garnishments, harassment, levies, and other collection means. If they don’t do so, they have to face severe sanctions for breaching automatic stay protection assigned by the law. Debt settlement companies cannot stop harassment from non-participating creditors.

Which of the Two Types of Bankruptcies Are Best for Me?

In case, you wish to pay the least to the lawyers and creditors, Chapter 7 bankruptcy is possibly the best option for you. In that case, the court will appoint a trustee for selling your non-essential assets. The trustee will divide the net proceeds to the creditors.

On the other hand, with Chapter 13 bankruptcy, you have to offer a plan to repay your debt to the court in duration of three to five years. You have to pay a certain amount to the credit card companies whether you go for Chapter 7 or Chapter 13 bankruptcy.