Whether you qualify for bankruptcy under either Chapter 7 or Chapter 13 will largely depend on your current financial landscape. Our first step is to meet with our clients and find out exactly where they are at and what type of bankruptcy might be right for their situation.

Chapter 7

Chapter 7 or “liquidation” is usually the fastest and most cost-effective method for debt elimination. Long term, it allows for most types of unsecured debts to be wiped out. Short term, it immediately stops creditor harassment and stays foreclosure proceedings. Chapter 7 is often a good option for people who have extensive personal debts from credit card bills, mortgage payments, or medical bills.

Chapter 13

Chapter 13 bankruptcy is essentially a “reorganization” of your debts accomplished through a repayment of some of your debt. Chapter 13 may be appropriate for people who have a steady income but have fallen behind. You may be able to conserve your assets such as a house or car and be put on a repayment plan lasting three to five years. A plan that is in line with your current ability to pay. Chapter 13 will help you keep your house and stop foreclosure.