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How Do I Decide Between Chapter 7 and Chapter 13?

If you are considering filing for bankruptcy you may be wondering how to decide between Chapter 7 and Chapter 13. Our firm has helped countless individuals obtain debt relief by helping them successfully navigate through the bankruptcy process. We have an in-depth understanding of the benefits of bankruptcy and we are very adept at helping individuals determine which type of bankruptcy will best suit their needs. We realized there are many factors which must be taken into consideration when making the decision to file for bankruptcy.

In cases where an individual has a significant amount of debt, without the financial means to be able to repay all or even a portion of that debt, he or she may be eligible to file for Chapter 7. Chapter 7 bankruptcy gives an individual the opportunity to eliminate the majority of his or her outstanding debt without necessarily having to liquidate a home, vehicle or other valued personal property. At the end of a Chapter 7 bankruptcy, an individual's debts will be discharged and he or she will be free to move on without the weight of prior financial obligations. There are a few types of debts which cannot be discharged through Chapter 7, but these are few and far between.

It is important to realize that not all individuals will be eligible to file for Chapter 7 bankruptcy. For those who do not qualify for this type of bankruptcy, due to an inability to pass the means test, Chapter 13 is another way in which they can obtain the debt relief they seek. Chapter 13 bankruptcy will give you the opportunity to reorganize your existing debt, catch up any delinquent or unpaid debt within a reasonable period of time and regain control of your financial situation. You may also want to consider filing for Chapter 13 rather than Chapter 7 if:

  • You have fallen behind on mortgage payments yet want to be able to keep you home
  • A second mortgage or the housing market caused you to go underwater on your home
  • You are delinquent on your car loan payments
  • You have student debt or tax debt that cannot be discharged via Chapter 7
  • You have property and assets that are not exempt under state or federal exemption laws
  • You have a co-debtor on any of your personal loans or financial agreements

The Indianapolis bankruptcy lawyers at Jackson & Oglesby Law LLC will be able to analyze your current financial situation, perform the means test and help you determine whether you should file for Chapter 7 or Chapter 13 bankruptcy. In certain circumstances, we may be able to help you obtain financial relief through one of the alternatives to bankruptcy. Call an Indianapolis bankruptcy attorney at our firm now.