Chapter 7
Chapter 7 or Chapter 13. Which one do I file?
Most individuals file Chapter 7 bankruptcy. In fact, last year in Orlando, 78% of the bankruptcy cases filed were Chapter 7 cases. So clearly it is the most popular type of bankruptcy, but is it right for you.
Factors that indicate you should file Chapter 7.
Factors that indicate that Chapter 7 is not right for you.
Under Chapter 7 you do not have to repay you debts, but some of your property may be sold and used to pay off your debts. A Chapter 7 bankruptcy is usually completed in six (6) months, so it is faster than a Chapter 13.
Ultimately, the type of bankruptcy you file depends on your specific financial situation. An experienced bankruptcy attorney can analyze your situation and recommend a plan for you.
Most individuals file Chapter 7 bankruptcy. In fact, last year in Orlando, 78% of the bankruptcy cases filed were Chapter 7 cases. So clearly it is the most popular type of bankruptcy, but is it right for you.
Factors that indicate you should file Chapter 7.
- You have few assets or most of your assets are exempt.
- Your monthly income is limited, and you cannot afford to pay your debts.
- Most of your debts are unsecured.
- You are current on your mortgage and car payments.
Factors that indicate that Chapter 7 is not right for you.
- You have filed bankruptcy during the past eight years.
- Your income is greater and you can afford to pay some of your debts.
- You are behind on your mortgage or car payments.
- You are facing foreclosure and want to keep your home.
- Your assets are too valuable or otherwise not exempt.
- You have more than one mortgage on your house.
Under Chapter 7 you do not have to repay you debts, but some of your property may be sold and used to pay off your debts. A Chapter 7 bankruptcy is usually completed in six (6) months, so it is faster than a Chapter 13.
Ultimately, the type of bankruptcy you file depends on your specific financial situation. An experienced bankruptcy attorney can analyze your situation and recommend a plan for you.