Which Bankruptcy Chapter Should I File?
When you've made the decision to file for bankruptcy to save your financial situation, you may be wondering which chapter you should file. Generally speaking, there are restrictions on who can file a Chapter 7 bankruptcy, while most people are eligible to file a Chapter 13 bankruptcy.
You should consider Chapter 7 bankruptcy if:
- You are unemployed and have few assets
- Your income is below the median income for Arkansas
- You barely have any income left after paying off basic living expenses
- Your debt is all unsecured debt (credit cards and medical bills, for example)
You should consider Chapter 13 bankruptcy if:
- You have a home or a car, and are behind on your payments, and don't want to lose either to bankruptcy
- You have enough disposable income every month for a Chapter 13 repayment plan
- You owe taxes or child support - Chapter 13 allows you to catch up on those payments
Most people who qualify for Chapter 7 choose to file this Chapter as it is a quick and easy way to eliminate debt. You should discuss your situation with an attorney to help you decide the right bankruptcy chapter for you.
Questions? Call Us for Your First Free Visit
Call our office for a free first visit to determine which Chapter of bankruptcy is best for you. We will also evaluate your case and recommend whether you need to file bankruptcy at all, or whether there are other options to help you.
Call us today to request your consultation.