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There are two options when filing personal bankruptcy under the U.S. Bankruptcy Code: Chapter 7 and Chapter 13 bankruptcy.
Learn more and determine which type of bankruptcy may help you, then click below to talk to a local bankruptcy lawyer about your eligibility to file bankruptcy:
CHAPTER 7(Discharge Unsecured Debts) |
CHAPTER 13(Interest-Free Repayment Plan) |
|---|---|
| Chapter 7 is commonly used when: | Chapter 13 is commonly used when: |
| You have little property except for the basic necessities like furniture and clothing. | You have significant equity in a home or other property and you want to keep it. |
| You have little or no money left after paying basic expenses each month—or you're not even meeting basic expenses. | You have regular income and can pay your living expenses, but you can't keep up the scheduled payments on your debts. |
| Advantages of Chapter 7: | Advantages of Chapter 13: |
| Most unsecured debts can be discharged (completely eliminated) | You can keep most of your property while spreading out time to pay past due accounts |
| The process moves quickly—you may receive your discharge in just a few months | You'll have 3-5 years to catch up delinquent accounts according to a schedule that you and the bankruptcy trustee have agreed is workable for you. |
| Creditors can't contact you while the automatic stay is in effect—or after debts are discharged. | You'll make one monthly payment to the bankruptcy trustee for distribution—you'll have no direct contact with creditors during the protection period of 3-5 years. |
| Co-signers may be protected | |
| Who can file under Chapter 7? | Who can file under Chapter 13? |
| Debtors who have qualified under the 'means test' and completed a required pre-filing session with a credit counselor may file for Chapter 7 bankruptcy protection. | Any individual debtor whose unsecured debts are below $360,475 and whose secured debts are less than $1,081,400. |
| Learn More About Chapter 7 » | Learn More About Chapter 13 » |
Everyone's financial situation is unique. Bankruptcy is designed to put an end to aggressive debt collection techniques like wage garnishment, repossession and foreclosure. How could filing for bankruptcy help you?
Through Chapter 7 or Chapter 13 bankruptcy, you may be able to find the breathing room you need to begin rebuilding your financial future.
Do you have bankruptcy questions about your specific financial circumstances? We'll connect you with a local sponsoring bankruptcy attorney who can answer your Chapter 7 and 13 questions.
Fill out the below form or call 877-349-1309 to connect to a sponsoring bankruptcy lawyer today:
Remember, each person's case is different. A lawyer can help you decide whether Chapter 7 could help you get out a debt. An attorney can also help you understand how the repayment plan works under Chapter 13, and how some people can stop foreclosure through the power of the automatic stay.
Even if you're not sure about filing for bankruptcy, an attorney can help assess your financial situation and possibly recommend alternatives to bankruptcy. Call today to learn more about your debt relief options.
The above summary of personal bankruptcy laws is by no means all-inclusive and is not intended to serve as legal advice. Bankruptcy laws may have changed since our last update. For the latest information on bankruptcy laws, speak to a local bankruptcy lawyer in your state.
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