Chapter 7 or Chapter 13 Bankruptcy

Deciding Between a Chapter 7 and Chapter 13 Bankruptcy

There are two main types of bankruptcy for consumers: Chapter 7 and Chapter 13. Each is appropriate for different situations. Before you file for either a Chapter 7 or Chapter 13 bankruptcy, you should understand the differences and how they apply to you. At StraightBankruptcy.com, our lawyers work closely with each client to make sure they are choosing the best type of bankruptcy for their specific financial situation. Plenty of time is spent with each client, and our attorneys welcome anyone nationwide to contact us with their questions.

How Much Money Do You Make?

The major difference between Chapter 7 and Chapter 13 is that you must go through a "means test" to qualify for a Chapter 7 (only if your combined household income is above the median income for the state you live in). If you do not pass the means test, you can always file for a Chapter 13.

The means test is complex, but a large part of it involves whether you make above or below the median income in your state. At this writing, the median income in Texas is $34,418 for a one-person household, $48,849 for two people, $51,678 for three people, and $59,369 for four people. For each additional person, add $6,300. If your household earns less than the median, you can qualify for a Chapter 7 bankruptcy based on your budget. But if you earn more and still want a Chapter 7, our lawyers can sit down with you and analyze your case. You may still qualify, but we would need to look at your case in greater detail. The means test only determines who qualifies for Chapter 7, not who is best served by it. It is possible that even if you qualify for a Chapter 7, you will be better off with a Chapter 13 bankruptcy.

Find Out More About Your Situation!

Call now (1-800-353-5792) to speak with a local bankruptcy attorney. There is never any obligation and everything discussed with the bankruptcy lawyer will be kept in the strictest of confidence. We at www.straightbankruptcy.org will help you make the right choice for your particular situation. To learn more, you may contact us today and we’ll help you connect to a bankruptcy attorney in your area. A bankruptcy lawyer can also help you with any other questions about the bankruptcy process.