Chapter 7 or 13, Which Is Right for Me?

If you are like many people, you have probably heard the terms "Chapter 7" and "Chapter 13" used left and right in bankruptcy matters. However, you may still be wondering: Chapter 7 or Chapter 13, which is right for me?


Tampa, Florida, Filing for Bankruptcy Considerations and Benefits

This is an excellent question, and I am here to help you answer it. I am Timothy J. Sierra, Attorney At Law, and I have more than two decades of experience guiding individuals and families through the bankruptcy process. With offices in Tampa, Riverview and Brandon, my law firm is committed to providing Florida clients with effective debt relief strategies. Schedule your free initial consultation today by sending me an e-mail.

Deciding Between Chapter 7 and Chapter 13

Most of the time, the kind of bankruptcy petition you should file depends on your financial situation and on the type of debt relief you desire. During the initial consultation, I can help you discover whether or not you qualify for Chapter 7. Eligibility is determined by a financial means test, which involves complex income and debt calculations.

If you earn too much money to qualify for Chapter 7, I can help you explore the possibility of filing for Chapter 13. In fact, some people who qualify for Chapter 7 still choose to file Chapter 13 instead. Reasons for choosing Chapter 13 over Chapter 7 include:

  • Paying off tax debt: Tax debts are not discharged under Chapter 7, but under Chapter 13 you can repay them according to a set schedule without interest or penalties.
  • Keeping property: Chapter 7 requires that all your nonexempt property be liquidated to pay your debts. If you want to keep nonexempt assets, Chapter 13 is usually a better choice.
  • Modifying loans: Unlike Chapter 7, Chapter 13 can act as a powerful tool to modify car loans or strip off second mortgages.

Schedule a Free Initial Consultation: Tampa, Clearwater or St. Petersburg, Florida

To discuss your specific goals, concerns and financial situation with an experienced Tampa bankruptcy lawyer, arrange a free initial consultation. Call the office toll free at 877-492-7449 or locally at 813-463-2256, or fill out the online contact form.

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