Which Type Of Bankruptcy Do I Qualify For?
When filing for consumer bankruptcy, clients have the choice of choosing between Chapter 7 or Chapter 13, depending on their individual situation. If you are not sure which type of bankruptcy option is better suited to your needs, use the lists below to compare the two, or call us at 662-278-0584 to speak with an attorney to schedule a free consultation. We have two conveniently located offices, in Holly Springs and Olive Branch, to best serve our North Mississippi clients.
Don’t Have Enough Income To Pay Your Bills? You Might Qualify For A Chapter 7 Discharge.
Although Chapter 7 bankruptcy lets you discharge most debts, there are certain qualifications that must be met. One of these is the disposable income or means test. While the process is very complex, our firm can get most people qualified for Chapter 7.
Chapter 7 bankruptcy:
- Completely discharges your eligible debts for a truly fresh start
- Stops all collection actions against you and your property
- Exemptions allow you to keep all of your property, in most cases
- Is ideal for those with little or no disposable income
- Can get your debt discharged in approximately four months
- Eliminates old judgments and lawsuits that could negatively affect your credit forever
- Allows you to keep your house and car payments current throughout the filing process
Although filing for Chapter 7 will help you eliminate more debts quicker, not everyone qualifies. Check with an attorney at one of our offices today to see if this option is available to you.
If You Don’t Qualify For Chapter 7 Or Are Facing Repossession Or Foreclosure, Chapter 13 Is Right For You.
Chapter 13 however, focuses on restructuring your debts to allow for repayment over three to five years. Those who don’t qualify for Chapter 7 due to high incomes or other circumstances are eligible to file under this chapter of the Bankruptcy Code instead.
The following lists the differences between Chapter 13 and Chapter 7:
- You can keep everything in Chapter 13, even non-exempt property.
- Chapter 13 helps you avoid foreclosure or repossession by repaying arrears through an affordable repayment plan.
- Chapter 13 is best for those with a regular income.
- You have the option, but not necessarily the obligation, to repay a portion or all of your debts through an affordable repayment plan.
- Your remaining unpaid eligible debts are discharged after three to five years in a Chapter 13 filing.
Note that the above lists only partially cover the benefits of Chapter 7 and Chapter 13 bankruptcy. Please consult an attorney at Schneller & Lomenick, P.A., for more detailed information on consumer bankruptcy and the different chapters to see which option would be most beneficial to you.
You Don’t Have To Decide Alone
If you are overwhelmed and uncertain about which chapter of bankruptcy is best for you, or which one you qualify for, let us help. We understand how complex the filing process may seem, and we’re here to explain everything. Speak with one of our lawyers today for answers to your questions or concerns, so you can make the right decision for you and your loved ones.
Call 662-278-0584 to set up your free consultation with one of our experienced attorneys today or reach out via our online contact form.
*We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.