Chapter 7 vs. Chapter 13

Differences Between Chapter 7 and Chapter 13 Bankruptcies

Trying to figure out which kind of bankruptcy you can or should file can be pretty confusing and requires a professional opinion to analyze your debts and options to determine what is best for you. The Rollins Law Firm will focus on your unique situation and develop a plan tailored to your needs. There are some basic differences between Chapter 7 and Chapter 13 as well as some similarities. When you work with our lawyers, they will explain all of the details of each to make sure you are making the decision that is right for you.

Chapter 7 Bankruptcy

This is typically known as "liquidation" bankruptcy because some of your possessions could be liquidated in order to pay your creditors. A common misconception about Chapter 7 is that you lose everything. This isn't true. Mississippi allows for property exemptions for people filing for bankruptcy under Chapter 7. This includes personal property, your IRA, and in some cases your home and car. The typical Chapter 7 filer keeps all of his or her property.

Chapter 7 allows for any unsecured debts (debts that are not guaranteed by collateral) to be discharged at the end of the three- to six-month long process, such as credit card and medical bills. For secured debts, you will either have to continue making regular payments, turn the property turned over to the creditor or you will have to pay the replacement value of the property to the creditor in a lump sum payment. It is important to note that most taxes, child support, alimony and student loans are usually ineligible for discharge in any bankruptcy.

You will have to pass a means test to see if you qualify for Chapter 7 bankruptcy. There is a certain level of income above which you will not qualify for Chapter 7 but may qualify for Chapter 13. Debtors with primarily business debts always qualify for Chapter 7.

Call our Columbia, MS Chapter 7 bankruptcy attorney at 601-500-5533 or contact us online for more information about whether you meet the qualifications for Chapter 7 bankruptcy.

Brandon, MS Bankruptcy Attorney

Chapter 13 bankruptcy allows you to keep your home, your car and much of your other property, so long as you have regular income and stick to a repayment plan to pay your creditors over the three to five years after filing. Chapter 13 is considered the "wage earners" bankruptcy because you must have a reliable source of income to qualify. At the end of the repayment period, most or all of the remaining debt is discharged.

There are limits to the amount of secured and unsecured debt you can have in a Chapter 13 bankruptcy filing. If you exceed the set amounts, you may not qualify for this kind of bankruptcy but may file for Chapter 11 bankruptcy

Call The Rollins Law Firm at 601-500-5533 or send us an e-mail to schedule your free initial appointment to learn about filing for bankruptcy.

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I had a wonderful experience. The staff were nice and very informative. The process was quick and easy. Very affordable for me being a single parent. Would recommend anyone there. - Lashay H.
The Rollins firm assisted me at a very low point in my life. After having a lot of medical issues and expenses, I found myself unable to make ends meet. Mr. Rollings and his staff worked very promptly to help. They made the process so easy to complete. - Vinester Smith.
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My wife and I were in an impossible financial situation where over time, we had built up so much debt that we could no longer keep up with all the payments. We were getting further and further behind until we reached out to the Rollins Law Firm for help. They have the knowledge and expertise through their experience to handle our particular situation. Their entire team of professionals are always available to answer questions, explain your options, and then provide the legal service that you need to relieve your financial worries and get you back on the right track! I recommend the Rollins Law Firm to anyone who needs help to deal with financial struggles. - Mike Zegelien.