Can You Choose Between Chapter 7 and Chapter 13 Bankruptcy?
The two types of personal bankruptcy each come with their own qualifications and benefits. Before you choose between Chapter 7 and Chapter 13 bankruptcy, you’ll want to speak with a qualified Memphis bankruptcy lawyer first.
At my firm, we often meet people who feel strongly about one chapter of bankruptcy. But if you try to file for the wrong one, you might not actually qualify. You run the risk of having your case dismissed or losing assets you wanted to keep.
If you feel confident about which you prefer, we’ll talk with you about how to make it happen. But sometimes you’ll be surprised which chapter you actually need. It can depend on:
- Your income
- What assets you want to keep
- What types of debt you have
- State law
- And other factors
As you choose between Chapter 7 and Chapter 13 bankruptcy, you may want to keep your own eligibility in mind.
The Difference Between Chapter 7 and Chapter 13 Bankruptcy
Our Memphis bankruptcy attorneys meet a lot of people who assume they need Chapter 7 bankruptcy. Chapter 7 will get rid of your dischargeable debts without you having to repay them.
It’s a relatively quick process, and a very popular one. You can usually even keep your house or car as long as you’re current on your payments.
Chapter 13 bankruptcy reorganizes your debts into an affordable 3-5 year repayment plan. In this plan, you pay back a small portion of your debts while increasing your week-to-week cash flow. If you’re behind on your home or car payments, you can file Chapter 13 and keep your property.
But before you can file either a Chapter 7 or Chapter 13, the government will use a formula to determine whether you’re eligible.
So you may be able choose between Chapter 7 and Chapter 13 bankruptcy. It just depends on your unique situation.
Memphis Bankruptcy Attorneys
Our Memphis bankruptcy firm will help you choose between Chapter 7 and Chapter 13 bankruptcy based on your options, eligibility, and goals.
To get started, contact us today or give me a call at 901-327-2100. The conversation is free.