We practice law in these areas:
What Are My Bankruptcy Options?
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CHAPTER 7 (Liquidation of debts) |
CHAPTER 13 (Adjustment of debts for an individual with regular income) |
| You may want to consider Chapter 7 if: |
You may want to consider Chapter 13 if:
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| You have little property except for the basic necessities like furniture and clothing. | You have significant equity in a home or other property and you want to keep it. |
| You have little or no money left after paying basic expenses each month – or you’re not even meeting basic expenses | You have regular income and can pay your living expenses, but you can’t keep up the scheduled payments on your debts. |
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Advantages of Chapter 7:
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Advantages of Chapter 13:
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| Most unsecured debts can be discharged (completely eliminated) | You can keep most of your property while spreading out time to pay past due accounts. |
| The process moves quickly – you may receive your discharge in just a few months | You’ll have 3-5 years to catch up delinquent accounts – according to a schedule that you and the bankruptcy trustee have agreed agreed is workable for you. |
| Creditors can’t contact you while the automatic stay is in effect – or after debts are discharged. | You’ll make one monthly payment to the bankruptcy trustee for distribution – you’ll have no direct contact with creditors during the protection period of 3-5 years. |
| Co-signers may be protected | |
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Who can file under Chapter 7?
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Who can file under Chapter 13?
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| Debtors who have qualified under the “means test” and completed a required pre-filing session with a credit counselor may file for Chapter 7 bankruptcy protection | Any individual debtor whose unsecured debts are below $360,475.00 and whose secured debts are less than $1,081,400.00. |