Choosing the best bankruptcy- Chapter 7 or Chapter 13 | Wantland Law Wantland Law » Choosing Between Chapters 7 and 13

Choosing Between Chapters 7 and 13

Which is Better for Me — Chapter 7 or Chapter 13?

Once you’ve decided that bankruptcy makes sense for your situation, the next step is to decide which chapter of bankruptcy to file. While Chapter 7 offers the fastest route to a discharge, not every person or every situation is best suited for a Chapter 7. People who have a lot of assets to protect might be better off under Chapter 13 even if they’re eligible for Chapter 7 relief.

Call 502-957-0000 for a Free Consultation About Your Bankruptcy Options

Contact a knowledgeable bankruptcy attorney at WANTLAND LAW, PLLC in Shepherdsville for reliable advice about choosing between Chapter 7 and Chapter 13 bankruptcy. Our lawyers have helped families throughout Bullitt County, Jefferson County and the Louisville area with all kinds of debt and collections problems over the past four decades, and we can help you through financial problems as well.

For most people, Chapter 7 is the better option if you can meet the eligibility requirements. A Chapter 7 case usually takes no more than six months from beginning to end, and you get a complete discharge from most kinds of unsecured debt —which means that, in most cases, you’ll never have to pay it back.

Chapter 7 comes with a catch, though. Generally, your household income can’t exceed the Kentucky median income if you want to obtain a discharge of your debts. If your income is higher, you will have to pass a “means test” in order to file for Chapter 7 relief. The good news, however, is that our lawyers have a detailed understanding of the bankruptcy income adjustments that could help you qualify. Some of the people we represent are pleasantly surprised to find that they are eligible for Chapter 7 after all. Let our professional advice and experience guide you toward the best method of debt relief for you.

Chapter 13 serves the debt relief needs of people in several situations. Typically, people file under Chapter 13 if their adjusted household income is too high to obtain a full discharge under Chapter 7. Many file under Chapter 13 because they own assets that would be subject to the claims of creditors in a Chapter 7 case or they want to use bankruptcy to get caught up on their mortgage or car loans.

Bankruptcy law recognizes certain property and assets as exempt from collection, and most of the people we work with own little or nothing that would be exposed to turnover. If you need extra help with protecting your assets, however, Chapter 13 might work out well for you.

Chapter 13 Requires You to Pay Back a Part of Your Unsecured Debts

A potential downside of Chapter 13 is that you still have to make payments. You will make payments to a bankruptcy trustee, generally for three to five years, who will then pay your creditors. Often times people end up paying just a nickel or dime on the dollar, but the exact amount you’ll need to pay depends on the total of your debts, the value of your nonexempt assets and your income. We can explain how this would work out in your case.

At WANTLAND LAW, PLLC, we work very closely with the people we serve to make sure that our advice fits their needs and circumstances. For more information about the differences between Chapter 7 and Chapter 13 and which is better for you, contact us in Shepherdsville to arrange a free consultation at your convenience.

We are a debt relief agency. We help people file for relief under the U.S. Bankruptcy Code.


The attorneys of Wantland Law in Shepherdsville, Kentucky, advise and represent individuals and families in bankruptcy cases and debtor-creditor negotiations in Bullitt County, Nelson County, Spencer County, Hardin County, Okolona, Jefferson County, Louisville, and such communities as Mount Washington, Brooks, Lebanon Junction, Bardstown, Taylorsville, Elizabethtown, Radcliff and Fort Knox.

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