Which Bankruptcy Is Better?

Knowing which chapter of bankruptcy is better for you depends on your situation. Fortunately, an experienced bankruptcy attorney can help you determine which is best. Regardless of which chapter you file, bankruptcy provides stability in an otherwise hectic financial situation.

Chapter 7 Bankruptcy

Chapter 7 Bankruptcy is a “clean slate bankruptcy.” This may allow you to discharge unsecured debt such as credit cards and medical bills. It is a relatively quick bankruptcy and you will receive a discharge typically within 3 months of filing.

Qualifying on the Means Test

You must first qualify to file a Chapter 7 Bankruptcy. Eligibility is dependent on several factors including your income, your expenses, and your family size. Often, a Means Test is conducted to determine if you are eligible.

Chapter 13 Bankruptcy

Chapter 13 is a reorganization of your debt. It can prevent foreclosure on your home or stop repossession of your vehicle. Chapter 13 allows you to restructure unsecured debt and, in some cases, tax debt, student loans, or child support. While you are typically in a Chapter 13 for three to five years, you are only repaying the percentage of your debt that the bankruptcy code requires. Because you have repaid a portion of your debts, this chapter generally looks better on your credit report.

Which is Better?

Which type of bankruptcy is better will largely depend on your specific circumstances and goals.  Whether you file a Chapter 7 or a Chapter 13, bankruptcy can alleviate your financial stress and get you on the road to recovery. We are here to make the bankruptcy process as painless as possible by offering unlimited free consultations and payment plans designed to fit your life.  Chapter 7 Bankruptcy can be filed for as little as $399.00 down and Chapter 13 Bankruptcy can be filed for as little as $0.00 down.

Reach out to us today.