If you are considering filing for bankruptcy, you may be wondering which chapter you should file for. There are two main chapters that people use: Chapter 7, known as liquidation bankruptcy, and Chapter 13, known as reorganization bankruptcy. The U.S. government designed Chapter 7 bankruptcy for persons who had virtually no disposable income, while Chapter 13 is for persons with a regular income who have the ability to pay back some of their debt. Therefore, in order to qualify for Chapter 13 bankruptcy, the courts will assess your income through a means test. They will also make sure that your debt is not a result of fraud and that you haven't discharged debt through Chapter 7 within 8 years.
If you do not qualify for Chapter 7 bankruptcy, then you will most likely be able to file for Chapter 13 bankruptcy. While this type of bankruptcy will not allow you to completely liquidate your debt, you can still reorganize your debt to make a manageable payment plan. Some of your debt may be able discharged after you complete a payment plan. This amount will depend on your income and the types of debt that you have.
If you want to find out if you qualify for Chapter 7 bankruptcy, then please don't hesitate to call a Roswell bankruptcy attorney at The Sherman Law Group. We can guide you through the bankruptcy process, as we have for countless others. Contact us today to get your free consultation!