Is Chapter 13 or Chapter 7 Better for You?

For some people in debt Chapter 13 bankruptcy is a better option than Chapter 7 bankruptcy, and in some cases it is the only option. It is important to have an experienced attorney help you sort out the issues to decide which form of bankruptcy is better for you. Many debtors assume that Chapter 7 bankruptcy is better because Chapter 13 requires repayment of some portion of the debts while Chapter 7 erases most debts but this is not always true.

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You would be ineligible for Chapter 7 if your income in the six months prior to filing exceeds the median income for your size household in your state and if your income after qualified expenses is greater than a certain calculated amount. This is known as “means testing” and the formulas vary from state to state. The means test is complex and truly requires professional assistance.

Chapter 13 Bankruptcy might be a better choice for you if:

  • You are behind on your mortgage or car loan, and want to make up the missed payments over time and reinstate the original agreement.
  • You have a sincere desire to repay your debts, but you need the protection of the bankruptcy court to do so.
  • You have non-exempt property that you want to keep. When you file for Chapter 7 bankruptcy, you get to keep only exempt property.
  • You have a co-debtor on a personal debt. If you file for Chapter 7 bankruptcy, your co-debtor will still be on the hook — and your creditor will undoubtedly go after the co-debtor for payment.

Fisher & Fisher Law Offices has been successfully helping people choose between Chapter 7 and Chapter 13 Bankruptcy for over 30 years in Monroe, Wayne, Pike, Luzerne, Lackawanna, and Carbon Counties. If you are considering filing either Chapter 13 or Chapter 7, we have the experience to protect your rights and property so you can start anew. We caution you against relying on bankruptcy advice and rumors from friends or family.  Although they may mean well, they do not possess the experience and knowledge of bankruptcy law necessary to give legal advice.

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Each person’s situation is different, and has to be considered carefully. Get reliable legal advice by calling Fisher & Fisher Law Offices today for a free consultation.

We are a debt relief agency. We help people file for relief under the bankruptcy code.