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What types of bankruptcy are available to me?

Two Types of Bankruptcy Chapters for Consumers

If you are interested in filing for bankruptcy, there are two types of bankruptcy for consumers. Chapter 7 or Chapter 13 are the two options for most consumers or non-business debtors. 

  • A Chapter 7 bankruptcy is very quick, usually about 4 months, and is typically used by someone who does not have much property or possessions. However, the full attorney fee must be paid before you can file a Chapter 7 and not everyone qualifies under the law for this chapter.
  • A Chapter 13 bankruptcy requires less cash upfront, usually as little as $400, and does not have as many requirements that prevent some from using this Chapter. It also allows you to protect a home and other property when you might be behind in payments. 

Both chapters usually allow you to discharge your unsecured debts, like credit cards and medical bills, and are effective at helping debtors achieve a clean financial slate. Call our offices to find out which chapter is right for you.

Which Bankruptcy Should I Choose?

Each bankruptcy chapter has its pros and cons. Here are some things to consider if you are deciding on which bankruptcy to file:

  • Do you qualify for Chapter 7? Not everyone is eligible for Chapter 7 because this chapter is only reserved for low-income filers. If you do not qualify for Chapter 7, you can file for Chapter 13. 
  • Do you have a stable income to repay debts? If you have a stable job with disposable income, you will have to file for Chapter 13 which allows you to repay your debts over a 3 to 5-year period. 
  • Do you have few assets? If you do not have much assets or a steady income, Chapter 7 would be the quickest and easier way to get rid of your debts. 
  • Do you have assets to protect? If you have assets that you do not want to lose to liquidation in a Chapter 7, you can consider filing a Chapter 13 to help you keep the asset. 

An attorney can help you determine the right chapter to file based on your financial circumstances. 

Interested in Filing for Bankruptcy?

If you are interested in learning more about Chapter 7 and Chapter 13, call our attorneys for more information. We can walk you through what you are eligible for and recommend the right option for your situation. 

Schedule your first free visit with our team today.