Which Chapter should I file under?


Much of the decision between a Chapter 7 and Chapter 13 petition rests with your specific financial condition. Here are some factors that we consider in evaluating your case:

  1. Is your current monthly income such that you are eligible for a Chapter 7 discharge?
  2. Do you maintain gainful employment such that you are able to afford a viable Chapter 13 repayment plan?
  3. Do you have non-exempt assets that will be compromised through a Chapter 7 filing that could otherwise be salvaged in a Chapter 13 plan?
  4. Are you behind on your car and/or mortgage payments? If so, would you like to keep these assets or would you rather surrender them to your creditors?
  5. Would you benefit from a Chapter 13 repayment plan through lower interest rates and monthly payments?
  6. Are some of your debt obligations eligible for a “cram-down” or “strip-off” that would make a Chapter 13 case more advantageous for you?