If you are considering bankruptcy, then you will probably notice that there are different types of bankruptcy option. Two of the most common are Chapter 7 and Chapter 13. How do you know which one to choose? On one hand, even if you have a good idea of which to file for, it is always best to ask an attorney for his or her opinion. Still, most people want to know a little about the differences before they visit an attorney’s office.

The difference between Chapter 7 and Chapter 13 bankruptcy is relatively simple. Chapter 13 helps you repay your debts while also discharging some debt. Chapter 7 bankruptcy, on the other hand will discharge most of your unsecured debt. You will also have to sell most of your nonexempt property to pay off the creditors to the best of your ability. There are also differences in the length of time it takes to settle a case. Chapter 7 lasts for about three to four months, whereas Chapter 13 lasts three to five years. So, how do you choose which bankruptcy route to take? Here are some tips for different types of debtors.

Employed Homeowners

If you are an employed homeowner who cannot pay your mortgage payments, then you may want to think about Chapter 13 bankruptcy. This is an easier way for you to catch up with your bulls and your past mortgage payments. You can also discharge some amount of debt. If you choose Chapter 7 bankruptcy, you may not be able to make up lost payments when it comes to your mortgage.

Unemployed Debtors

Keep in mind that there is no hard and fast rule when it comes to determining which bankruptcy you should file. Now, if you are an unemployed debtor who does not have many assets, then Chapter 7 may be more appropriate for you. Chapter 7 bankruptcy removes your debt. This is the faster option that relieves you of most debt. Now if you are unemployed but have significant equity, you may want to consider Chapter 13. You could choose either option, depending on your situation.

Bankruptcy can be complex and it may be difficult to decide which option is best for you. This is why it is crucial that you have a lawyer that can help guide you through the process and help you to determine whether Chapter 7 or Chapter 13 fits your situation. To discover which route is best, set up your consultation with a chapter 7 bankruptcy lawyer in Waterbury, CT as soon as possible.



Thanks to The Law Offices of Ronald I. Chorches for their insight into bankruptcy law and which chapter is right for you.