Chapter 7 or Chapter 13 Bankruptcy
Friday, January 13, 2017
If you read our article last month, we gave an overview of when you should consider filing for bankruptcy. We understand that you’re already overwhelmed, so trying to navigate the bankruptcy courts is just one more thing on your plate.
One of the many things we will help you decide is which type of bankruptcy to file. There are several types, such a Chapter 11 bankruptcy for businesses, but the two most common for individuals are Chapter 7 and Chapter 13.
A Chapter 7 bankruptcy eliminates all debts included in the filing. If you don’t have many assets, but you have a significant amount of debt, you may be eligible for a Chapter 7 bankruptcy. We will give you a Means Test that evaluates if you would be able to repay any of our debts. If you can, a Chapter 13 may be a better option.
The end result of a Chapter 13 bankruptcy is a structured payment plan. You will be allowed to keep certain assets so long as you continue paying back your debt. This is a good option if you have a steady income and you don’t pass the Means Test.
A bankruptcy is not a bad ending, but it can be a fresh beginning. The best person to make a recommendation on if you should file for bankruptcy and how is your attorney. Contact us today to set up an appointment to discuss your financial situation.