The Social Security system is in place to help us through difficult times. Unfortunately, there are some instances in which the system makes our lives even more difficult than they need to be. The day I received the denial letter for my claim, I wasn't sure what I was going to do. After talking with a few friends, I contacted a lawyer. That was the best decision I had ever made. Even with the professional assistance, getting the denial overturned and getting the money that I was owed took several months. I have kept a clear journal of my experience and loaded it with information that can help others get through what can be an impossible time.
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Social security denial - a journal of assistance
The Next Chapter: Which Bankruptcy Chapter Is Best For You?
Alexis Garcia
While recognizing when the time is right to declare bankruptcy is important, it might not be your only decision. There are two bankruptcy types to consider and they are known as chapter 7 and chapter 13. The bankruptcy code allows several other forms of bankruptcy but those two are the most commonly-used when it comes to consumer bankruptcy filings. These two types have similarities and differences that might influence your choice depending on your particular situation. Read on for guidance and an explanation of each type.
Is chapter 13 the right choice for you?
While not as popular, this type of bankruptcy is best for those who are reluctant to turn their backs entirely on their debt situation. Here, debts may remain in place but filers are provided with special repayment plans that can be easier to complete. For example, creditors under a chapter 13 repayment plan might lower interest rates and minimum payments, raise the amount of time left to pay the debt and even accept less to settle the debt.
What else to know about chapter 13 filings:
1. There are no income limits to file so high-income filers can still get some debt relief.
2. It can take longer for this type of bankruptcy to be final since the debt repayment plans can go on for years.
3. You probably won't stand to lose property with this type of filing.
4. There is less of a long-term impact on credit scores with a chapter 13 since it can remain on your credit report for up to 7 years. Chapter 7 filings remain for 10 years, however.
Is chapter 7 the right choice for you?
When people say "bankruptcy", filing for chapter 7 is usually what they mean. It is unique in the manner that it can eliminate all credit card and personal debt (in most cases), so it's ideal for those who have over-used their credit availability. It can also be used to halt debt collection activities like foreclosures, court judgments, and repossessions.
What else to know about chapter 7 filings:
1. If your income is too high you may not be able to file. In this case, too high means more than the state's median income.
2. This type of filing can be completed in a matter of a few months.
3. Some of your property could be subject to seizure by the bankruptcy courts, but exemptions could help you keep more property.
Speak to your bankruptcy lawyer if you need more insight in choosing the best form for you.
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