Chapter 7 vs. Chapter 13

Posted June 28th, 2011 in Blog and tagged , , , , , by admin

So, you’ve done the research into each, but still aren’t sure if you should file Chapter 7 vs. a Chapter 13 .  That is a pretty understandable problem to have.  There can be so many factors that go into determining whether you should file Chapter 7 vs. Chapter 13 that even an experienced Bankruptcy Attorney may have trouble figuring it out sometimes.

Chapter 7 vs. Chapter 13 — What to look for

When you’re making the choice between Chapter 7 vs. Chapter 13, you have to look at the individual aspects of your case to determine what will work best or if you are even qualified.  The first step I take with my clients is to have them fill out a general questionnaire the first time they come to my office so we have some information upon which we can begin to base this decision.

Chapter 7 vs. Chapter 13 — Do you qualify?

Generally, the first thing I am looking for when I’m weighing Chapter 7 vs. Chapter 13 with a client is whether they even qualify to file both types of cases.  To file a Chapter 7 Bankruptcy , you have to meet the income restrictions that have been established by the and the median incomes of your jurisdiction.  The Means Test is not easy to understand and complete, so I recommend the use of an experienced Chicago Bankruptcy Attorney .  Even if you think you have too much income, you may still qualify, and a good attorney will help you figure that out.  However, if you earn too much, you may only be able to file a Chapter 13 Bankruptcy , and this post is of no use to you.  If instead you do qualify, then we have to look deeper.

Chapter 7 vs. Chapter 13 — What will work best?

Next, I begin to look at the types of debts that you have and what the results will be if you file Chapter 7 vs. Chapter 13 regarding each of those debts.  If you have many secure debts and you have been having trouble paying them, but still want to keep the property, a Chapter 13 Bankruptcy may be better for your purposes.  However, if you merely have a bunch of credit cards, medical debts, and deficiency judgments, a Chapter 7 Bankruptcy might accomplish everything that you need.

There is much more that goes into this decision as it is a question that requires a very nuanced answer.  As such, if you believe you need to file a Bankruptcy, but remain unsure whether it should be Chapter 7 vs. Chapter 13, I suggest you give my office a call for your free consultation to begin getting the answers you need.

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