Chapter 7 Vs. Chapter 13

Which Form Of Bankruptcy Can I Use?

Sometimes, clients walk into our office wondering whether they should apply for Chapter 7 or for Chapter 13 bankruptcy. The fact is, however, that the choice isn't up to them. Depending on the debtor's financial circumstances, they will qualify for one or the other, but not both.

Chapter 7 and Chapter 13 bankruptcies are by far the most common forms of personal bankruptcy. Though they both eliminate all or most of a consumer's debt, the two programs go about this task in entirely different ways.

Chapter 7: Quick And Powerful Debt Relief

Chapter 7 bankruptcy is for people who have relatively low income and high levels of debt. Under Chapter 7 bankruptcy, some of the debtor's assets are collected and sold to pay off a portion of the outstanding debt. Then, the rest of the debt is eliminated, leaving the consumer debt-free. The process can be completed relatively quickly, usually taking just four to six months.

Chapter 13: Payment Plan For Long-Term Relief

Chapter 13 bankruptcy is generally used by people who have a steady income. When a debtor files for Chapter 13 bankruptcy, a payment plan will be created that will allow the debtor to pay off a portion of his or her debt over the course of three to five years. If the debtor sticks to the payment plan for the duration of the bankruptcy, then the remainder of his or her debt may be forgiven when the process is completed. Though Chapter 13 takes much longer than Chapter 7, it generally comes with a much smaller penalty to the debtor's credit score.

Get The Legal Help You Need

There are many differences between Chapter 7 vs. Chapter 13 bankruptcy, but at The Law Offices of Tracy L. Robinson, LC, we are fully prepared to assist Kansas City residents no matter which filing they require. Attorney Tracy L. Robinson is a certified specialist* in the field of personal bankruptcy, and he has over 20 years of experience helping Kansas and Missouri residents become debt-free.

Contact A Kansas City Chapter 7 Bankruptcy Attorney

If you are falling behind on your debts, don't hesitate. Contact us, or call 816-832-2686 to speak to an experienced Kansas City bankruptcy lawyer.

*NEITHER THE SUPREME COURTS OF MISSOURI AND KANSAS NOR THE MISSOURI AND KANSAS BAR ASSOCIATIONS REVIEW OR APPROVE CERTIFYING ORGANIZATIONS OR SPECIALIST DESIGNATIONS.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.