Debt is not the easiest thing to deal with. Most are aware that there are a variety of bankruptcy types and debt relief options available to them. Choosing the right path to pursue is wholly dependent upon one’s circumstances and their desired outcome. This is why it is critically important that those who are facing overwhelming debt ensure that they are fully informed before taking any legal action.
To see just how important this is, one need only look at a recent study that showed that some segments of the population may be pursuing bankruptcy options that may not meet their needs. According to those studies, African Americans are two times more likely to pursue a Chapter 13 bankruptcy rather than a Chapter 7 bankruptcy when compared to their Caucasian counterparts. It should be noted that both Chapter 13 and Chapter 7 bankruptcies can prove a beneficial debt relief option, but, again, the right choice depends on the circumstances at hand.
The studies voiced concern that so many African Americans are being driven into Chapter 13 bankruptcy because, according to the researchers, this bankruptcy path takes longer, costs more and leads to lesser debt forgiveness. Although this may be true, Chapter 13 bankruptcy also allows a debtor to keep his or her assets. A Chapter 7 bankruptcy, on the other hand, requires a debtor to liquidate his or her assets and pay the proceeds to creditors before debt can be written off.
So what does this study mean to Illinois and Indiana families looking to relieve the burden of crushing debt? It means that they cannot let anyone push them into one form of debt relief over the other. Instead, these families need to gather as much information as they can and then make a decision that they believe is in their best interests. By carefully choosing a bankruptcy attorney, these families may be able to obtain guidance that is dependable and beneficial in both the short and long-term.