Chapter 7 Bankruptcy and Chapter 13 Bankruptcy: Which One is Right for You?

CHAPTER 7 BANKRUPTCY AND WHICH ONE CHAPTER 13 BANKRUPTCY: FOR YOU? IS RIGHT WHY CHAPTER 7? WHY CHAPTER 13? Better for debtors with regular income and more property. Better for debtors with low income and little property. Most unsecured debts Can protect property/equity. can be discharged. 1.57 million number of people who filed for Chapter 7 or Chapter 13 bankruptey in 2010. Chapter 7: 1,139,601 Chapter 13: 438,601 38 YEARS 180 DAYS time before filing for average age of bankruptey filer bankruptcy in which a debtor must receive credit counseling to be eligible to file. DECIDING WHICH IS RIGHT FOR YOU: Have you not complied with 11 U.S. C. Section 109? (1) Have you willfully failed to abide by a bankruptcy-related court order or appear before the court in the proper prosecution of a bankruptcy case within the last 6 months? OR (2) Did you request the voluntary dismissal of a bankruptcy case fullowing the filing of a motion for relief from bankruptey stay within the last 6 months? NO YES Are you struggling to pay your basic expenses? You may not file for Chapter 7 or Chapter 13 bankruptcy. NO YES Are you filing for bankruptcy as a business, rather than an individual or married couple? Are you looking to liquidate your debts rather than reorganize them? YES NO NO YES You may not file for Chapter 13 Bankruptcy. Can you pass the bankruptcy "means test" (average income less than the median income for a household of your size in your state)? Are your unsecured debts less than $360,475 and secured debts less than $1,081,40o? YES NO NO YES Chapter 7 Bankruptcy may be right for you. You may not file for Chapter 7 Bankruptcy. You May not file for Chapter 13 Bankruptcy. Chapter 13 Bankruptcy may be right for you. *Always consult a professional before making the decision to file for bankruptey Infographic Provided By: SAPINSKI LAW OFFICE S.C. www.bankruptcylawmilwaukee.com Sources: www.creditcards.com/credit-card-news/state-us-bankruptcy-filing-statistics-1276.php www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter7.aspx www.uscourts.gov/FederalCourts/Bankruptcy/BankruptcyBasics/Chapter13.aspx www.totalbankruptcy.com/chapter-13/statistics.aspx