William H. Oliver, Jr. & Associates

Se Habla Espanol

Free Initial Consultation

Local 732-361-4196
Toll Free 866-974-1136
Menu / Navigate View Our Practice Areas

Which is better: Chapter 7 or Chapter 13 bankruptcy?

Most people are aware that there are multiple types of bankruptcy that can be used to help them get out of a financial crisis, but they do not know the differences or how they work. If you are considering filing for bankruptcy, it is important that you understand all processes so that you can decide which chapter will be the most beneficial to your situation.

Chapter 7 bankruptcy is commonly referred to as “clean slate” bankruptcy. This is because debts are wiped clean due to the liquidation of assets that are nonexempt from the process. In most cases, the one who filed for Chapter 7 bankruptcy does not lose all of their possessions. Common assets such as vehicles and some home equity are exempt. Some hold only assets that are exempt, so they do not pay anything to creditors.

After payment has been issued, the filer is no longer liable for the debts that were once accrued.

 

To qualify for Chapter 7 bankruptcy, you must show that you live below a certain level of means, varying by state.

Those who cannot file for Chapter 7 bankruptcy often turn to Chapter 13 bankruptcy. This is for those who have the means to repay their debts, though they are experiencing a financial crisis. A repayment plan is issued which allows them to keep the assets that they own.

In short, there is no “better” chapter to turn to when filing for bankruptcy. Both have their advantages and disadvantages, and it is all about which you qualify to use. If you have additional questions about bankruptcy, speaking to an experienced attorney could be beneficial to your situation.

No Comments

Leave a comment
Comment Information

Get Help Now

Bold labels are required.

Please note that First AND/OR Last Name, and Email AND/OR Phone are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

FindLaw Network

At the law offices of William H. Oliver, Jr. & Associates in Toms River and Lakewood, New Jersey, we represent clients in Toms River, Neptune, Trenton, Middletown, Red Bank, Wall, Lakewood, Lakehurst, Manchester, Asbury Park, Old Bridge, Jamesburg, Barnegat, Forked River, Manahawkin, Ocean Township, Brick, Manasquan, Howell, Freehold, Hazlet, Bradley Beach, Brown Mills, Long Branch, Keansburg, Marlboro, Bayville, Beachwood, Whiting, Sayreville, South River, East Brunswick, Monmouth County, Ocean County, Middlesex County, Burlington County and Mercer County.