You don't ask a question, but expecting pages and pages of information here about the different kinds of Bankruptcy, with no facts about you, is not appropriate. You can google information. The way to see what kind of bankruptcy is right for you, if at all, is to see a lawyer to review your financial situation and go from there.
Many attorneys, including our firm, give a free consultation where we will discuss the options with you.
My answer is general information not intended to create an attorney-client relationship. Seek advice from a qualified attorney to see how the law fits your specific facts. If you are in Washington, please feel free to contact us at (425) 283-0432 to see if we might be of assistance.
Many attorneys in the Seattle area offer a free initial consultation. An experienced attorney will be able to explain if you have potential issues (e.g,, assets you might lose, non-dischargeable debt, ability to qualify for the chapter you want to file, etc.). Make sure any attorney you hire can answer the questions you think a bankruptcy attorney should be able to answer. If they can't keep looking. Filing bankruptcy is a big deal. It is not a bad idea to interview more than one attorney so that you find someone you are comfortable with. Good luck.
Chapter 7 bankruptcy, otherwise known as a “liquidation” plan, is generally the simplest and quickest form of bankruptcy. Chapter 7 bankruptcy may eliminate most kinds of unsecured debt such as credit cards, medical bills and personal loans. Chapter 7 can also stop wage garnishments, and stop lawsuits filed by creditors. The Chapter 7 bankruptcy process usually takes from four to six months. In addition to getting rid of debt, Chapter 7 bankruptcy allows you to typically keep most if not all of your “exempt” property. Depending on the situation, it may be possible to keep your car and home provided your payments are current, and there is no significant equity.
Chapter 13 bankruptcy is a repayment plan where you consolidate your debts and make a payment on your debt over a three to five year period. While in a Chapter 13 bankruptcy debt repayment plan, the creditors cannot collect from you, and are required to adhere to the terms of the plan. Any late payments or “arrangements” can be made up over the repayment period.
Chapter 13 is particularly useful to those, with steady incomes, who are facing foreclosure or repossessions and want to keep their property. Generally, a percentage of unsecured debts are repaid over the period and people often find that this reorganization of debt is much more affordable than their current payments.
Nashville Bankruptcy Attorney Greg Atwood, Partner at Atwood & McVay, LLP.
You need to find an attorney and request information - Most attorneys will offer you a free consultation so that you can figure out which chapter of bankruptcy is right for you.
Contact an attorney that offers a free consultation. Bankruptcy is a complex area of law that requires sufficient background information to determine which chapter is appropriate, if at all.
This answer is not meant to be legal advice or the formation of an attorney-client relationship. The information is not guaranteed to be correct, complete, or up to date. Do not take any information provided in this answer as an indication or guarantee of future results or outcomes for your specific case. We assume no liability for the use or interpretation of information contained in this answer. You should seek appropriate legal advice from a competent attorney licensed to practice law in your state and focusing in the area of law relating to your particular problem.
Most file a chapter 7 so start your research to see if you qualify. Look to see if you pass the means test. You can google "means test calculator" to test out your situation. I see many situations, every week where a bankruptcy doesn't make sense because it would create a bigger problem for the individual. For example, having too much equity in a home could be a problem for a chapter 7 bankruptcy. After you've done research, even if you don't hire a lawyer, you should still at least run your thoughts by an experienced attorney to see if you've made an error in your analysis.