Before you file for bankruptcy, you’ll likely want to know what type of bankruptcy to file for. The reality is that you have to meet certain requirements in order to file bankruptcy at all, and you may not be eligible for either Chapter 7 or Chapter 13. If you do happen to meet the requirements for both options, then the choice should come after you meet with a tenured bankruptcy attorney, like Alec Solomita.
If you have higher income than the median income for a family unit of a similar size, you may be eligible for Chapter 13. To be eligible for Chapter 13, you also must not go over a certain level of debt, which can be calculated using an individual debt adjustment. If you don’t meet the specific requirements, Chapter 13 bankruptcy will likely not be available to you.
Typically, Chapter 7 bankruptcy is the favored choice (if choices are available) since there is the possibility of having all debts discharged (besides certain debt associated with the liquidated property.) Chapter 7 bankruptcy is more often a much faster process as well. That said, if you have an adequate income and fairly substantial assets, Chapter 13 may be a better choice overall.
This brief synopsis of the differences between Chapter 7 and Chapter 13 is just that – brief. In order to get a clear picture on what your financial future needs, you should call Solomita Law and get a consultation scheduled. Bankruptcy doesn’t have to be a nightmare, and Mr. Solomita will help guide you through the process as painlessly as possible.