If you are considering filing for bankruptcy, you will need to decide if you should file for Chapter 7 or Chapter 13. Each type of bankruptcy has benefits and drawbacks depending on your circumstances. So what should you consider when you decide? You should have an attorney walk you through the details of each option. However, it is good to have a basic knowledge of each before you meet with your attorney.

Chapter 7 Bankruptcy Advantages:

• A clean start – Once you receive a discharge, you will be left only with debt on property which is collateral for liens for which you filed a “Reaffirmation Agreement”.
• Any wages you earn after the filing date are yours, not the court’s or creditor’s.
• Any property you acquire after the filing date is yours, not the court’s or creditor’s.
• There is no minimum amount of debt required to file Chapter 7 bankruptcy.
• On the date of filing, you are immediately protected from creditors’ efforts to collect, garnish wages, or repossess collateral.
• Chapter 7 bankruptcy cases should be completed in three to six months.

Chapter 13 Bankruptcy Advantages:

• You get to keep all of your property if you choose to do so, and can afford the payment plan.
• From the date of the Chapter 13 bankruptcy filing, you will have immediate protection from creditors’ attempts to collect or garnish wages.
• Debts may be significantly reduced.
• If the payment plan provides for full payment, co-signers are protected from creditors’ collection efforts.
• You have protection against foreclosure if you meet the terms of the plan.
• More debts are considered “dischargeable” under Chapter 13.
• You have more time to pay your debts.

How should you decide?

Whether you are filing Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, you will need to consider various disadvantages to each. Variables which will affect your choice include:

• Have you previously filed Chapter 7 Bankruptcy?
• If so, has it been 8 years since your last filing?
• Are there co-signers who might be affected by your filing Chapter 7 Bankruptcy?
• Are you behind in mortgage and vehicle payments, and you would like to keep the property and/or vehicle?
• Would you like to surrender home and vehicle in full satisfaction and have no debt left on either your home or vehicle?
• Can you continue to pay adjusted rates on the remainder of your debt for anywhere from three to five years?

Bankruptcy is complex and many answers depend upon your specific situation. J. Michael Hall, partner at Hall and Navarro, has 30 years of experience in bankruptcy. He has worked with many businesses in Bulloch County, Effingham County, and surrounding areas to achieve debt relief.

The attorneys at Hall and Navarro are passionate about law. We serve Effingham County, Bulloch County and surrounding areas. The attorneys at Hall and Navarro provide focused and experienced representation from your initial consultation until the resolution of your legal matter. We offer a broad range of legal services and are dedicated to serving individuals and businesses.

Please contact us to schedule your consultation.

Please consult an attorney for advice about your individual situation. This site and its information is not official legal advice, nor is it intended to be. Feel free to get in touch by e-mail, letters or phone calls. Contacting us does not create an attorney-client relationship. Until an attorney-client relationship is established, please withhold from sending any confidential information to us.