Ask A Lawyer: Can I Choose The Type Of Bankruptcy? If So, How Do I Choose The Best Type For Me?

Denvil Crowe's picture

Not everyone realizes that bankruptcy offers a choice. Potential filers of bankruptcy cases may realize that there are, at least, three different types of bankruptcy but may not know that they may file any one of them if they qualify by meeting eligibility requirements. If you meet the eligibility requirements for both Chapter 13 and Chapter 7 bankruptcy, you may choose which to file. Of course, it makes sense to enlist the assistance of a seasoned professional like Denvil Crowe to provide all of the related knowledge necessary to make the best choice based on your financial circumstances, assets, and liabilities.

Eligibility is primarily based on present and past income. Specifically, if you have income higher than the median income for a similarly-sized household, you are not eligible for Chapter 7 if some of your unsecured debt could be repaid within five years (theoretically in a Chapter 13 plan of repayment). Another requirement of eligibility for a Chapter 13 filing is that there is a ceiling on the amount of debt that you may have.

If you have a choice, it usually is wiser to file a Chapter 7 bankruptcy, since you may be able to have all of your debts discharged in a shorter period of time. Chapter 13 may be the most appropriate option if you have a greater amount of income and nonexempt assets.

If your financial situation requires the filing of a bankruptcy case under Chapter 7 or 13, an experienced and qualified bankruptcy attorney can help you accurately review and carefully consider your options and which is best for you. An experienced and qualified bankruptcy attorney can help you throughout the entire lifespan of a bankruptcy case. Call 800-429-HELP (4357), email us at Contact@denvilcrowe.comor check us out online today!


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