Can I choose between Chapter 7 & Chapter 13 bankruptcy?
Chapter 7 & Chapter 13 bankruptcies are the two most common forms of personal bankruptcy in the U.S. They each have pros and cons, and which one is right for you depends upon a number of factors such as your income, assets, and debts. You can choose between the two forms of bankruptcy if you meet certain eligibility requirements. However, you may only qualify for one type of bankruptcy and may therefore not have a choice.
Chapter 7 is a liquidation bankruptcy. It will wipe out your unsecured debts such as cash advance loans, credit card debts, garnishments, judgements and medical bills. However, if you have too much disposable income, you may be disqualified from filing a Chapter 7, and you may be forced to file a Chapter 13 instead.
After filing a Chapter 7, a bankruptcy trustee is appointed to handle your case. Any nonexempt property must be sold and the money used to pay back creditors. If you have large amounts of nonexempt assets, you may also choose not to file a Chapter 7 so that you can keep your assets. Most individuals who file a Chapter 7 have a low level of income, few assets, and need to get rid of their unsecured debts.
Chapter 13 bankruptcies are reorganizations in which your debts are reorganized, and you are put on a repayment plan. It allows you to catch up on missed payments while simultaneously making current payments. Chapter 13 bankruptcies are normally best for those debtors with regular income who can pay back some of their debts, and who have assets they would like to keep.
Pro’s and Con’s
There are pros and cons to Chapter 7 & Chapter 13. Chapter 7 bankruptcies are much faster, and are typically over in six to ten months. Chapter 13 bankruptcies last until all payments are made under the plan, which is typically three to five years. Therefore, if the speed of the bankruptcy is important to you, you may choose to file a Chapter 7.
Your income and assets matter too when filing Chapter 7 & Chapter 13. To file a Chapter 7, you must pass a means test which shows that you are low income. To file a Chapter 13, there are limits on how much unsecured debt and secured debt you can have.
One of the biggest benefits to a Chapter 7 is that it is over quickly, and allows debtors to obtain a fresh start. On the other hand, a Chapter 13 takes a long time, but allows debtors to keep their assets and to catch up on their mortgage payments, car payments, and other payments.
Each type of bankruptcy also has drawbacks. The biggest disadvantage for a Chapter 7 is that the nonexempt property is sold; although the debtor may want to keep that property. One of the biggest drawbacks for a Chapter 13; is that the debtor must make monthly payments to the trustee for years. Also, in a Chapter 13 typically the debtor has to pay back a portion of the unsecured debts, which would be dischargeable in a Chapter 7.
You should discuss your bankruptcy with an attorney to determine which type, if any, is right for your situation. If you are considering bankruptcy, call the Atlanta bankruptcy attorneys at Holston & Huntley, LLC at 888-513-0004. Our attorneys are experienced and can help find the right solution for you! Call us today to schedule a FREE consultation.
I just wanted to say thank you to the entire company,throughout my entire incident they worked fast and diligently.They always called,texted and or email me to keep me updated.They always showed great gratitude and always kept me informed. Everyone on this team is awesome.I will definitely recommend anyone here for your injury and/or bankruptcy needs.They will make sure you get the respect and the money you need. Thank you and the whole team.
I would highly recommend Holston and Huntley. The staff in the office are very nice. Abena was a big help she is the best!! They are very helpful and get everything done in a timely manner. My experience with the firm was GREAT!
Miss Abena is the best, they are working on my case now ,I just love them always kept it 100000000 and I feel like family
I had an excellent experience with Holston and Huntley. My case/medical expenses were treated with the upmost care and efficiency. I recommend anyone with any type of accident injury to visit Holston and Huntley. Abena Campbell was extremely helpful and made everything convenient and comprehendible about the my case. She was made everything easy as possible. I definitely recommend Ms.Campbell to take of you.
You can count on Buddy and Abena they are awesome. Abena was wonderful, she showed concern for me through my case. Abena walked me through this process like she knew me a long time. I promise you I felt good knowing I was being guided by someone who really cared their staff is awesome. I give them a 10+. Thank you guys, Especially, Abena
My experience with Holston & Huntley attorneys was nothing short of excellent. I worked directly with Abena. She worked hard to get the settlement that I deserved. Continued to stay in contact and keep me updated throughout the long process. Would recommend and work with them again. Thanks Holston & Huntley!
Attorney Huntley and his entire staff was instrumental in getting me everything I deserved. Their patience, kindness, and loyalty to fight for my needs at a critical time proves why they are such a fantastic firm. I would highly recommend them for any of your needs. I personally, will call Mr Huntley if I’m ever in another accident.
I was never anxious despite being in this situation for the first time and all the credit goes to you and your firm because you care and know what you are doing.Thanks.
I don’t usually leave reviews on anything but I thought I needed to share my experience with Holston & Huntley. It was great! Very quick and efficient. Buddy and his staff were awesome. I personally worked with Abena and she was always available to answer any question I had. I highly recommend this firm to anyone who needs a professional lawyer that would fight to get you the best settlement you deserve. I promise you won’t be disappointed!! Thank you, Buddy, Abena and staff for all of your help.
Holston & Huntley entire team was great to work with!!! Thank you so much
- Holston & Huntley LLC @HolstandHuntLLC Don’t feel embarrassed if you can no longer make your car payments or other debt payments . Sometimes you need a re… https://t.co/agvjD9YjxnHolston & Huntley LLC @HolstandHuntLLC Don’t let creditors stress you out. Give us a call, we are here to help 1-844-422-8339. @ Holston & Huntley LLC https://t.co/rLy4PDHwfg