When Chapter 7 is Better than Chapter 13

There are several instances when filing a Chapter 7 bankruptcy is a smarter option than filing Chapter 13. Chapter 7 brings with it a specific set of advantages that make it an intriguing and desirable choice for many bankruptcy filers.

The best advice on which type of bankruptcy to file will come from your Tampa bankruptcy lawyer, but here are a few points in favor of Chapter 7.

Benefits of Chapter 7

Chapter 7’s main draw is its simplicity; an average case takes about half a year, and results in the filer emerging from proceedings totally debt free (barring certain types of non-dischargeable debt). It even allows the filer, in most cases, to keep their home and their car, or other vital possessions. Hiring a bankruptcy lawyer and filing Chapter 7 is the way to go for those who are faced with loads of debt and no way to pay creditors.

The trick is that you must pass the means test in order to qualify for Chapter 7 bankruptcy protection. The means test is a metric which measures your earnings against your debts and determines whether you can make certain minimum payments. If you pass the means test, you are eligible for Chapter 7 and can proceed; if not, you must choose another option.

Chapter 13 filing means you will have to complete the entire repayment plan in order to have the remainder of your debts discharged, which can be a daunting task for someone already having trouble making payments in the first place. Chapter 7 offers no such stipulation, and is the right choice for many seeking a fresh start. Talk to your bankruptcy lawyer today to find out if it’s the right choice for you.

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