Should I file Chapter 7 or Chapter 13 Bankruptcy?

When the following conditions exist, filing Chapter 7 may be your best bankruptcy option:

  • You cannot pay your debts.
  • Your creditors are pestering you or threatening to sue you.
  • All of your assets are exempt.
  • If you want to keep property securing a debt (house, car, etc.) you are current with the payments.

Chapter 13 could be your best bankruptcy option, especially if you—

  • Are behind on your mortgage payments
  • Own non-exempt assets you want to keep
  • Owe the IRS for taxes and want to set up a payment plan
  • Do not qualify for Chapter 7 due to too much income

For a more thorough comparison analysis, see this chart from the American Bar Association.

The best way to evaluate your personal situation is to contact me for a free, initial consultation.

*The information contained on this website is not intended and does not constitute the providing of any legal advice or any legal opinions or services to any user thereof. The information available on or through this web page is not intended and shall not be used as a substitute for the advice and consultation provided by an attorney.  Any factual examples used to illustrate concepts are hypothetical and do not depict actual events or real persons.