Halloween brings scary choices—but few are as daunting as deciding between bankruptcy and debt defense.
Chapter 7 wipes most unsecured debt in about four months but may require liquidating non‑exempt assets. Chapter 13 reorganizes payments over three to five years with court supervision.
Debt defense keeps you out of federal court. By challenging documentation, asserting the three‑year statute of limitations, and negotiating strategic settlements, many clients resolve lawsuits at a fraction of balances without bankruptcy on their credit reports.
Key factors: asset equity, income stability, number of lawsuits, and looming wage garnishments. A single six‑figure medical debt might justify Chapter 7, while multiple small credit card suits may favor defense.
Credit impact differs: Chapter 7 stays for 10 years; settled accounts typically fall off after seven. Mortgage applications often view recent bankruptcies unfavorably.
Hybrid approaches exist. Some clients defend older debts while including newer ones in Chapter 13 to prevent garnishments.
Georgiou Law conducts side‑by‑side analyses comparing total cost, timeline, and credit recovery for both paths.
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⏰ Don’t let indecision cost you. Book a free strategy session with Georgiou Law at (917) 764‑3072 before creditors choose for you.
