Chapter 7 vs. Chapter 13

Filing for bankruptcy is not a decision to take lightly. An attorney can guide you through numerous considerations, such as:

Is now the right time to file? Bankruptcy law limits the number of discharges you may receive over a certain period. If you receive a Chapter 7 discharge, you must wait eight years to receive a second Chapter 7 discharge or four years for Chapter 13. If you have received a Chapter 13 discharge, generally, you must wait six years to receive a Chapter 7 discharge and two years for a second Chapter 13 discharge.

What types of debts do you have? Chapter 7 and Chapter 13 treat debts differently, depending on their type, source and history. For example, filing for chapter 13 can provide a way to discharge some debt types that filing for Chapter 7 cannot.

Do you have any additional goals? While the main purpose of bankruptcy is to wipe away debt for a fresh start, it can have additional benefits. For instance, if you are worried about losing your home, Chapter 13 can stop foreclosure proceedings and cure delinquent mortgage payments.

Whatever your goals, I can explain and guide you through each part of the bankruptcy code and any other bankruptcy alternatives that may better suit your needs and goals.

While bankruptcy is a complicated area of law, the type of bankruptcy that works best for you largely depends on just two items: your income and your goals. Your income is important because it is used to determine if you pass the means test to qualify for Chapter 7. Your goals are important because even if you qualify for Chapter 7, your goals may dictate that Chapter 13 is a better fit. For instance, if much of your debt is secured debt and you are significantly behind in your payments, Chapter 7 may require you to surrender the collateral. However, Chapter 13 can permit you to catch up on payments through a payment plan and may allow you to cram down, or reduce, the principal on your loan to the property's actual value.

Contact us today for guidance on your financial issues

Financial distress can be frightening and emotionally draining. However, consultation with an experienced attorney greatly can reduce your anxiety by giving you hope for the future. At Blalock Law Offices, P.A., I work with you one-on-one. Contact us today by phone at or online.