Chapter 7 vs. Chapter 13 Bankruptcy

When considering filing for bankruptcy, one of the oldest questions is in regards to which chapter you should file. After all, there are two separate chapters and they both appear to be equally good at helping people to clear their debts. There are, however, distinct differences that will come into play that should be considered when looking into filing. So which chapter should you file? Put simply, the chapter that is best suited for your individual case. At Scupp & Berman, LLP, we will be able to help evaluate your case and determine which chapter will be best for you.

Should I file for Chapter 7 or Chapter 13?

There are many different things that you should consider when making the decision between Chapter 7 and Chapter 13, however, at the end of the day, you should be considering what your end goal is. In a Chapter 7 bankruptcy, you will be working to liquidate your assets and fully discharge your debts, while in a Chapter 13, you will be looking to create a repayment plan to pay off all of your debt.

For people who have very little property, they will likely be more inclined to file for Chapter 7 as they won't have anything to lose in liquidation; however, someone who has the disposable income to pay off their debts and who has property they want to save from liquidation, Chapter 13 will be the better bet.

It is impossible to say which chapter is better since both have distinct advantages. Chapter 7 allows for all unsecured debts to be discharged, has a quick timeline and puts an automatic stay into effect which protects you from creditor harassment. Due to the quick discharging of the debt, many people will assume that this is the "better" chapter, but this is not always the case. For example, there are several distinct advantages that are unique to Chapter 13, such as the following:

• Any co-signers that you may have will be protected;
• You are able to keep all of your property and assets;
• You have three to five years to "catch up" on all payments; and
• You make one lump payment a month to a trustee , with no contact with creditors

So how do you determine which chapter to file for? The best answer is work with an experienced Long Island bankruptcy lawyer. There is no blanket answer that will help you to determine what decision you should make. It is a unique answer that will differentiate for every person and their unique circumstances - to get the best answer, you need to work with a lawyer to help evaluate your case.

Bankruptcy Lawyer Serving Suffolk and Nassau County

When looking into filing bankruptcy, we encourage you to consult with our law firm as soon as possible. With over 25 years of legal experience, we have helped to file over two thousand bankruptcy petitions. This is the kind of experience that you can rely upon. So do not hesitate to get us involved as soon as possible. The sooner that you give us a call, the sooner that we will be able to schedule your free, no-obligation consultation. Then we will be able to go over the specifics of your situation to determine which chapter will best suit you. Once that has been determined, we will be able to take the first steps in the bankruptcy process and will be one step closer to seeking fiscal stability. It all starts with a phone call, so don't put it off any longer - pick up the phone today.

To discuss the differences between Chapter 7 and Chapter 13, it is in your best interests to contact a Long Island bankruptcy lawyer from our firm today!