There are some important differences between a strategy and a tactic. In simple terms, a tactic is the way you intend to execute your plan. A strategy is your plan.
Many people who are struggling to make ends meet assume that bankruptcy is a strategy to get them out of hot water. While it’s true that bankruptcy can provide a little breathing space and will stop creditors from harassing you, bankruptcy is really a tactic to accomplish your financial goals. Bankruptcy is not an end in itself. It’s a means to successfully move from where you are to where you want to be.
Just as bankruptcy is best understood as a tactic rather than a strategy, whether you should pursue a Chapter 7 or Chapter 13 bankruptcy is a question best answered by your longer-term strategic goals. For instance, if you need financial breathing space, a Chapter 13 may be the better option. With a plan of reorganization lasting up to five years, a Chapter 13 reorganization give you time to get your financial house in order.
On the other hand, if you qualify for a Chapter 7 and need a relatively quick discharge of some one-time-only debts, a Chapter 7 straight liquidation may be right for you. In general, a Chapter 7 bankruptcy is less expensive, considerably less time consuming, and much less stressful.
What’s the right direction for you? It’s important to research your options, but spending some time with a qualified bankruptcy professional is a great way to tailor your tactical options to your longer-term financial strategy. Experience counts. Experience and expertise is what you’ll find with the bankruptcy attorneys at Fears Nachawati. For your free consultation, talk to our professionals today. We’re here to help clients like you.