Chapter 7 vs. Chapter 13
Bankruptcy Attorney for Long Island, NY
There are different types of bankruptcy, and
Chapter 7 and
Chapter 13 are the most common. Depending on your financial situation, your income to debt ratio and other factors, you may or may not qualify for Chapter 7 bankruptcy. Generally speaking, Chapter 7 is reserved for individuals with little to no income and few assets, while Chapter 13 may be sought by an individual with regular income and property that needs protection. Although the outcome of either a Chapter 7 or Chapter 13 bankruptcy is essentially the same: the elimination of all eligible debt. However, this will be accomplished in different ways.
Determining whether you qualify for Chapter 7 and which type of bankruptcy is right for you is an important factor to consider. At Jacoby & Jacoby, we have more than 50 years of collective experience in Long Island bankruptcy representation and can offer you the information and advice that is relevant to your particular case. Our goal is to help you make an informed choice about Chapter 7 versus Chapter 13 and whether to file for bankruptcy in the first place.
Will You Qualify for Chapter 7?
Not every individual will qualify to file a Chapter 7 bankruptcy because they must pass what is called a "means test" and our Long Island bankruptcy lawyer can help you to better determine this.. This test concerns the income of the debtor and determines whether the debtor has enough money to make a payment to creditors that is arranged in a Chapter 13 bankruptcy. The purpose of this test is to separate the debtors who can pay and who cannot pay, helping creditors recover at least a portion of the money they are owed. Whether you pass the means test and are able to file a Chapter 7 bankruptcy or if you need to file under Chapter 13, a lawyer at our law office can help.