Which type of bankruptcy should I file? Chapter 7 vs. Chapter 13

It is your choice, not your attorney’s choice, which type of bankruptcy to file. There are advantages and disadvantages to each which your attorney can go over with you. It depends on what you want to accomplish. Here are some things to consider when making your decision:
  • Chapter 7 Bankruptcy gives you a second chance at financial freedom as quickly as possible. You are able to discharge debts within 3 or 4 months.
  • Chapter 7 is the only realistic option if you are not earning more money than you need for your current living expenses.
  • Chapter 13 may be a better choice if you are trying to protect an asset which does not fall within the North Carolina exemptions.
  • Chapter 13 can allow you to catch up on house and car payments if you have fallen behind. 
  • Attorney fees are generally lower for a Chapter 7 case, but are required to be paid up front. In a Chapter 13 case, the fees are higher but can be paid over time.
Each set of circumstances is different, and the US Bankruptcy laws offer multiple opportunities for a ‘fresh start.’   Contact me if you would like to learn more.