Which Chapter is Right for Me?

Should I File for Bankruptcy Protection Under Chapter 7 or Chapter 13?

The answer to this question depends on your financial situation and overall goals, and it is imperative that you do not make this decision without seeking the advice of an experienced bankruptcy attorney to carefully analyze your case in order to provide you with all of the information necessary to make an informed decision.

Most bankruptcy chapters filed in the Unites States are either Chapter 7 or Chapter 13. There are specific pros and cons in the decision to file under either Chapter and a knowledgeable bankruptcy attorney can explain these to you so that you can make the decision that is best for you and your family. Contact the Larkin Law Firm today at 877-256-3946 to talk to a San Diego bankruptcy attorney.

Chapter 7 Bankruptcy:

A Chapter 7 bankruptcy is typically filed by consumer debtors or businesses with a large amount of unsecured debt, normally consisting of credit cards, medical debts property leases, etc. If a consumer or business does not possess a large amount of assets that would otherwise be taken from them, and they have reasonably low income, Chapter 7 is usually the best choice. If your income is too high however, you may be required to file a Chapter 13 bankruptcy (see below). Sometimes, Chapter 7 is a good choice in situations where a debtor or business wants an orderly liquidation of assets and to have that process handled by an appointed trustee. In this case, the trustee assumes any liability for the liquidation of assets and payments of claims.

Chapter 13 Bankruptcy:

A Chapter 13 bankruptcy is typically more beneficial for individuals with the ability to make monthly payments to repay a portion of their debt. This usually happens with individuals who earn a good living and would otherwise be ineligible to file for bankruptcy protection under Chapter 7. Chapter 13 can also be a good decision if you have too many assets to file for Chapter 7 and you don’t want to lose them. Chapter 13 allows debtors to keep non-exempt assets provided their plan of reorganization promises to repay an amount equal to the value of the non-exempt assets. Finally, Chapter 13 allows you to strip junior mortgages and cure mortgage arrears over time to stop foreclosures and repossessions.

The bottom line is that this is a decision too important to handle on your own. There are too many factors to consider, and too many obstacles to overcome to file a bankruptcy case without the assistance of a competent bankruptcy attorney. Generally speaking, you can only file for bankruptcy protection once every 8 years so this is a decision that will impact you for years to come.

San Diego bankruptcy attorney, Jeffrey Larkin has the answers you need and can help guide you to the best financial outcome for your particular situation. Contact the Larkin Law Firm today at 877-256-3946 to get started on the right path.


The Larkin Law Firm is a debt relief agency. In addition to other debt relief services provided, we help individuals and businesses file for bankruptcy protection under the Bankruptcy Code.

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