Chapter 7 vs. Chapter 13 Bankruptcy

Which Consumer Bankruptcy Protection Is Better for Your Needs?

At Chapter13.Me, we are here to help you compare Chapter 7 bankruptcy vs. Chapter 13 bankruptcy as you explore which consumer bankruptcy protection may be better for your current financial needs.

Most people who choose Chapter 7 do so because it is quick, effective, and easy to file. Plus, it doesn’t require any repayments. However, not everyone will be eligible for Chapter 7 bankruptcy and in those cases, Chapter 13 bankruptcy may be a better option, especially if you’re facing foreclosure or repossession.

Let us connect you with a nearby bankruptcy attorney who can examine Chapter 7 vs. Chapter 13 along the lines of your financial difficulties. All you have to do is fill out our free bankruptcy case evaluation form or call 1 (888) 632-0504, and we’ll do the rest in connecting you with a local bankruptcy attorney from our nationwide network of sponsoring bankruptcy lawyers.

On this page, take a closer look at the advantages and disadvantages of each consumer bankruptcy protection. Once you learn basic information about each of these bankruptcy protections and speak with a local bankruptcy attorney, you will be in a better position to empower yourself on the road to financial freedom.

Should You Choose Chapter 7 Liquidation or a Chapter 13 Repayment Plan?

You may want to choose Chapter 7 if the following applies to you:

You have little property.
You have little or no money left after paying basic monthly expenses.

You may want to choose Chapter 13 if:

You have a lot of equity in your house.
You have regular income and can pay your bills, but need a modified payment plan to stay current on your bills.

What Advantages Do You Have under Chapter 7 Bankruptcy & Chapter 13 Bankruptcy?

If you are eligible to file under Chapter 7, some advantages may include the following information.

Most of your unsecured debts can be completely eliminated.
This is a fast process. It may only take you a few short months to get your fresh start.
If creditors contact you during the automatic stay, it is a total violation of bankruptcy law. Plus, after you receive the discharge, creditors are prohibited from contacting you.

The advantages you will have if you file Chapter 13 bankruptcy include:

Keeping a large portion of your property and spreading out the payments that you are currently behind on.
Having a window of 3-5 years to pay your past due bills.
Not having to see your creditors. The bankruptcy trustee will make all our payouts to creditors. Now doesn’t that give you peace of mind?
Mom being protected as the co-signer on that new sofa or car you wanted.

Are You Eligible for Chapter 7 and Chapter 13 Bankruptcy?

Well, that depends. In order to file bankruptcy under Chapter 7, you must meet eligibility under the mandated means test and complete a pre-filing session with a credit counselor.

You are typically eligible to file under Chapter 13 if your numbers meet the criteria below -

Your unsecured debts are below $360,475; and
Your secured debts are less than $1,081,400.

Let a Local Bankruptcy Lawyer Examine Chapter 7 vs. Chapter 13 with You

Determining whether filing Chapter 7 bankruptcy makes more sense to you or whether Chapter 13 bankruptcy is the better option at this point in your life may be a difficult task on your own. That’s why it most often makes sense to speak with a local bankruptcy lawyer who can help you examine the two consumer bankruptcy protections and what they mean to you.

The goods news is that Chapter13.Me can connect you with a local bankruptcy lawyer in little time. To receive further assistance, just complete our free bankruptcy case evaluation form or call 1 (888) 632-0504, and we’ll be happy to connect you quickly with a bankruptcy attorney near you.

The above summary is not legal advice. Laws may have changed since our last update. For the latest information on bankruptcy laws, speak to a local bankruptcy lawyer in your state.