Which Chapter of Bankruptcy Should I File?

People typically choose between two types of bankruptcy: Chapter 7 and Chapter 13. We know it may seem confusing, but we are here to explain the difference and recommend the chapter that is the best fit for you.

At Rothschild & Ausbrooks, PLLC, we start by getting to know your finances and goals, so you can be confident that the guidance we provide is based on your needs. Our attorneys have been serving people just like you in Nashville and throughout Tennessee for more than 30 years. You can rely on the experienced advice and counsel our board-certified bankruptcy attorneys provide.

The Choice Between Chapter 7 and Chapter 13

Taking the means test is one step in the bankruptcy process. It determines if you are eligible for bankruptcy and which chapter of bankruptcy you are eligible for. We will explain how the means test works when we discuss the specifics of your case.

Generally, Chapter 7 is for people who have unsecured debts such as credit cards and medical bills. People who file Chapter 7 may also have a more limited income and fewer assets. In Chapter 7, debts are discharged rather than repaid. A Chapter 7 bankruptcy can take as little as a few months to complete.

Chapter 13 is often used by people who have more income and more assets. They may choose Chapter 13 bankruptcy as a way to stop home foreclosure or protect other assets. In Chapter 13, the filer's debt is reorganized into a repayment of three to five years. When the plan is completed, certain remaining debts may be discharged.

Each case is unique, and you should speak with an experienced lawyer to learn whether bankruptcy is the appropriate option for you.

Other Types of Bankruptcy

There are other types of bankruptcy available for businesses and individuals. Chapter 11 is often used by businesses to reorganize debt, but individuals with high income and high levels of debt can also use it. While many business owners believe their only option is to file Chapter 11, in some cases, Chapter 7 or Chapter 13 may make more sense. Our lawyers will review your situation and help you decide the best type of bankruptcy for you.

Contact Us for a Free Bankruptcy Consultation

Please contact Rothschild & Ausbrooks, PLLC, today to get answers to questions about which chapter of bankruptcy is right for you.

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