Which Chapter Is Right For You?
If you are struggling with debt, you may know that bankruptcy is the strongest debt relief option available under the law. You may not know, however, which chapter of bankruptcy is right for you.
Wiping Out Debt With Chapter 7 Bankruptcy
If you have significant unsecured debt such as credit card or medical bills and little hope of ever being able to pay it back, Chapter 7 bankruptcy might be the best option for you. Whatever unsecured debt remains is discharged. The entire process typically takes three months.
Chapter 7 bankruptcy qualification is based on the means test. Your income and assets must fall below a certain threshold in order to qualify. If you make too much to qualify for Chapter 7, you may wish to consider filing under Chapter 13.
Getting Debt Under Control With Chapter 13
If you are behind on a mortgage or other secured loan, have property you want to protect and have a steady income, Chapter 13 bankruptcy might be the better option. In a Chapter 13, debt is reorganized and paid back in monthly installments over a three- to five-year period. Some debt may be discharged altogether, depending on your income, assets, the nature of the debt and other factors.
Chapter 13 is often used as a means of getting caught up with loan payments while getting protection from creditor harassment, home foreclosure, vehicle repossession and other creditor actions.
Helping You Make The Right Choice
The information on this page is general and not intended as advice. I cannot tell you which bankruptcy chapter is right for you without conducting a thorough analysis of your debts and overall financial situation. To schedule a consultation with an experienced bankruptcy lawyer in Southbury, please contact my law office online or by telephone at 203-583-8668.
My firm is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.