Which Chapter Should You File?

Our Ft. Lauderdale Bankruptcy Attorney Can Help You Decide

Once you decide you need the debt relief that bankruptcy can provide, the next step is for you to determine which chapter you should file. Individuals and married couples can file bankruptcy under Chapter 7 or Chapter 13. So which chapter is right for you? Ft. Lauderdale bankruptcy attorney Jeffrey Solomon can help you determine which path you should take.

Who Should File Chapter 7

Chapter 7 bankruptcy is what people usually think of when they think of bankruptcy. Chapter 7 discharges your legal obligation to repay most of your typical debts, such as credit cards, medical bills, personal loans and some utilities. Chapter 7 might be the right fit for you if:

• You do not have valuable assets. Most people in Chapter 7 cases are able to keep their property, but if you have any valuable property and cannot exempt it, the Chapter 7 trustee can take the property and sell it to repay your creditors.
• You are below the median on the bankruptcy means test. The bankruptcy means test is a way to measure whether you have enough income to repay your creditors.
• You have little money leftover at the end of the month after paying your necessary expenses, not including your debt payments.
• You can no longer afford to keep your house and/or your car. In a Chapter 7 bankruptcy, you can surrender your house and/or your car and walk away owing nothing.

Who Should File Chapter 13

Chapter 13 bankruptcy is a repayment arrangement. Chapter 13 cases can help you save your house, pay off your car, pay the IRS and even catch up on past due child support. Chapter 13 is a good option if:

• You owe the IRS. While you can discharge some income tax debts in bankruptcy, most income tax debt is nondischargeable. In a Chapter 13 case, you can repay the IRS without incurring further penalties.
• You want to stop a foreclosure and keep your home. Chapter 13 bankruptcy stops foreclosure immediately and forces the mortgage company into an arrangement to repay your mortgage arrears while you pay your current payments.
• You want to stop a creditor from repossessing your car. Chapter 13 bankruptcy will protect your car from repossession and allow you to pay your car loan in full over the life of the plan, potentially with a lower interest rate and even a lower balance in the right circumstances.
• You make too much money to file Chapter 7, but you cannot handle your debt as it is. If you have disposable income after paying your necessary expenses, you cannot file Chapter 7; however, Chapter 13 is available to help you control your debt.
• You have valuable assets. If your assets are too valuable to risk a Chapter 7, you can file a Chapter 13 case to pay the value of those assets over time while you retain ownership.

If you are struggling through hard times and need debt relief or foreclosure help, bankruptcy may be what you need. Contact Broward County bankruptcy attorney Jeffrey Solomon for a free consultation. We help consumers with bankruptcy in Ft. Lauderdale, Broward County and all of South Florida.