Is Chapter 7 bankruptcy the right chapter for me?
Do you need to file bankruptcy? And if you do, how do you know which Chapter of Bankruptcy to file under or which one you qualify for? Which chapter is right for you? Ultimately, the answer to this is to have a comprehensive consultation with our experienced bankruptcy attorney, because it is a very complex analysis which takes into account a lot of different factors.
However, this page should provide somewhat of a basic roadmap to help in making your determination on where to at least look to determine if you need to file bankruptcy and, if so, under which bankruptcy chapter. More specific information can be found on my individual Chapter pages: Chapter 7, and Chapter 13
Click Here to see a helpful video on the different bankruptcy chapters.
A. Are you a corporation or partnership? If so, your only options are Chapter 7 or Chapter 11.
B. Are you an individual or married couple? If so, any chapter may work for you depending on your circumstances.
In general, Chapter 7 is the least expensive and quickest bankruptcy. It allows you to discharge your debts (those that are dischargeable) without doing any repayment. The risks and problems with Chapter 7 are:
1. While it is usually not an issue, in some cases your assets may be at risk, depending on their value and whether you have sufficient exemptions available to protect them
2. You may not be eligible for Chapter 7 if your income presently, or for the 6 months prior to filing is too high.
See my Chapter 7 page for more details and information
Chapter 13 does everything a Chapter 7 does, but gives more options. The tradeoff is that it is more expensive and time consuming. In Chapter 13 you can:
1. Keep all your assets
2. Remove certain liens against property
3. Catch up on past due payments on mortgages
and much more.
The “tradeoff” in a Chapter 13 is that you must do a repayment plan over 36-60 months (3-5 years). The amount of the monthly payment will depend on a number of factors, including your income and the non-exempt equity in your assets.
See my Chapter 13 page for more details and information.