Experienced legal counsel know that Chapter 13 is often the preferable choice.
Which chapter of bankruptcy to file is often the most important decision you and your attorney will make. If you have spoken with an attorney who only does Chapter 7 cases, best beware. Some attorneys only dabble in bankruptcy law and are inclined to only recommend, for their convenience, the simplest form of bankruptcy.
Chapter 13 Bankruptcy
Sometimes called a “repayment plan”, Chapter 13 Bankruptcy is typically best for debtors who are gainfully employed and who have assets and/or secure property they wish to keep and protect. Chapter 13 is a reorganization of your financial life, giving you an opportunity to prioritize what is important to you, what is worth keeping, and what needs to be eliminated. Either chapter of bankruptcy will ultimately eliminate your unsecured debts (medical bill, credit cards, etc), but Chapter 13 also gives you the ability to keep the assets you most treasure and need, like your home or car. It also gives you peace of mind to know that you are making your best efforts to deal with your debts and not just walking away from them.
As your legal counsel, I will always recommend the chapter of bankruptcy that I believe gives the best financial results, both now and in the long term. The ultimate decision on which chapter to file is yours.
Chapter 7 Bankruptcy
Sometimes called a “straight bankruptcy”, Chapter 7 Bankruptcy is typically best for debtors with little to no assets or secured property and who have experienced a severe financial reversal that is likely to persist due to a life changing event, such as illness, divorce, job loss, etc. In its simplest form, Chapter 7 is a liquidation(sale) of your assets to pay your creditors. Chapter 7 can be an excellent way to eliminate your debts and get a fresh start on your financial life.