How Do I Know Which Type of Bankruptcy Is Best for Me?

Posted on : July 6, 2017

Are you thinking about filing for bankruptcy? If so, you have rights and knowing the options available to you is strongly recommended. Talking things over with a lawyer is one of the best ways to make a final decision about filing for bankruptcy. There are two primary types of bankruptcy for individuals, known as Chapter 7 and Chapter 13. It’s important that you realize what’s required for each so that you make an informed decision about your future.

The answer to determine whether or not Chapter 7 or Chapter 13 bankruptcy is more uniquely situated with you has to do with your specific circumstances. Having a consultation with a knowledgeable bankruptcy lawyer at the outset of your case can help you determine whether Chapter 13 applies more specifically to your situation or whether Chapter 7 is right for you. Most people will go through the process of trying to qualify for Chapter 7 first and then filing for Chapter 13 bankruptcy if they are ineligible. Chapter 7 bankruptcy is more appropriate for people who have many unsecured debts, such as medical bills and credit card debts. If you have low income and the majority of your debts are unsecured, Chapter 7 bankruptcy may be the most appropriate route for you.

Chapter 13 bankruptcy is better for those individuals who have non-exempt property that they would like to keep and for those who have a regular income. No matter the circumstances in your case, taking action promptly can be the first critical step towards a better financial future. Scheduling a consultation with a knowledgeable bankruptcy attorney is one of the most important things you can do to protect yourself, but you need to take action sooner rather than later. There is a lot on the line for you, if you intend to file for bankruptcy, but this fresh start can allow you to get a better financial foothold on your future.

If you want to keep your assets and have an income to help pay back your debts over the course of time, Chapter 13 bankruptcy can help. If you need complete liquidation and all your non-exempt assets to be sold off, Chapter 7 may be more appropriate. Choosing the right type of bankruptcy can be accomplished with a lawyer.

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