Should I Choose Chapter 7 Or Chapter 13 Bankruptcy?

When you are facing overwhelming debt, you may not know what path to take. Should you declare bankruptcy? If so, what kind?

O'Connor First has helped thousands across Upstate New York take the first step toward a fresh financial start through bankruptcy or other forms of debt relief. We can walk you through the forms of relief available to you, and help you make the decision that is best for you in your unique situation.

If you do wish to declare bankruptcy, you may be wondering if you should choose Chapter 7 or Chapter 13 bankruptcy. As you are weighing your options, ask yourself these questions.

What Kinds Of Debt Do You Have?

Chapter 7 bankruptcy discharges many types of debt, such as credit card debt and medical debt. However, if you need to declare bankruptcy because of tax debt or student loan debt, this form of bankruptcy likely isn't for you. While some debts are non-dischargeable under Chapter 7, you may be able to reorganize them into a more manageable payment plan with Chapter 13 bankruptcy.

What Is Your Income Level?

Chapter 7 bankruptcy is only available for those who fall under a certain income threshold. If you have a relatively high income and are facing serious debts, you may not be able to discharge those debts. Chapter 13 bankruptcy is available for those with higher incomes who do not meet the requirements for Chapter 7. Meet with our attorneys to discuss your financial situation and determine if you are eligible for Chapter 7 given your income level.

Would You Like To Keep All Your Assets?

Chapter 7 bankruptcy may require you to give up some of your assets. You are often able to keep your home and your car, but other assets may be seized to pay off a portion of your unsecured debt. If you would like to keep all of your assets, you may want to consider Chapter 13 bankruptcy, which simply reorganizes all your debt into payments that are easier to manage.

Learn More About Your Options In A One-On-One Consultation

Different debt relief options are available for your unique financial situation, and everybody deserves a custom evaluation to help them choose the best option available. Don't hesitate to reach out to our lawyers in Albany - call 518-465-0400 for your consultation, or reach out online to get started.

We are a federally designated debt relief agency proudly helping people file debt reorganization plans and bankruptcy for over 35 years.