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Should You File For Chapter 7 Or Chapter 13 Bankruptcy?

Debtors who pursue relief through bankruptcy may file Chapter 7, Chapter 13 or another type of bankruptcy. A mandatory means test will determine whether you qualify for Chapter 7 bankruptcy, a fast and direct path to a fresh start.

I can help you figure out the right form of bankruptcy for your situation. Millions of Americans have experienced financial relief through bankruptcy. I am Dr. Wade Bettis and my law firm, Wade Bettis, J.D., Ph.D., PC, can be a helpful resource for you, starting now.

Distinctions Between Chapter 7 And Chapter 13 Bankruptcy In A Nutshell

Filing Chapter 7 or Chapter 13 bankruptcy triggers the “stay of execution,” which prohibits creditors from attempting to collect on debts. What happens next depends on the type of bankruptcy.

If you are eligible and file for Chapter 7 bankruptcy, expect the following:

  • You will pay legal fees before filing.
  • Most or all of your credit card debt, revolving credit loans, medical bills and personal loans may be discharged.
  • If you have secured loans such as a car loan and/or mortgage, you may be able to reaffirm these debts after the bankruptcy and keep your property – or you may choose to let both the loans and the property go.
  • Your bankruptcy may take just a few months.

If you file Chapter 13 bankruptcy, you may follow this path:

  • After filing, you will meet with a bankruptcy trustee and agree to an affordable monthly repayment plan that includes your legal fees.
  • You will repay secured debts (like unpaid mortgage premiums), nondischargeable obligations (like past-due student loan payments) and unsecured debts (like credit cards) – possibly with little or no interest – over three to five years.
  • Remaining unsecured debt balances may then be discharged.

Other Types Of Bankruptcy: Chapter 11, Chapter 12 … And “Chapter 20?”

Chapter 11 bankruptcy is commonly used by businesses and corporations and occasionally for wealthy individuals. Chapter 12 bankruptcy is for farmers and fishermen. It offers more flexibility for these individuals than the other forms of bankruptcy do.

“Chapter 20” is not an actual form of bankruptcy. Rather, it is a term to describe the practice of filing a Chapter 7 followed by a Chapter 13 bankruptcy. With an individualized review of your unique financial situation, I can help you determine the most suitable form of bankruptcy. I can then guide you through the bankruptcy process along your road to a better financial future.

To reach my law offices and schedule a free case evaluation, call 541-963-3313 or send a message.

I am a debt relief agent. I help people file for bankruptcy relief under the Bankruptcy Code.