Should you file a Chapter 7 or a Chapter 13?

Chapter 7 -- Personal Bankruptcy

Individuals and married persons may elect to file a Chapter 7 bankruptcy, the fastest and easiest bankruptcy, the fastest and easiest bankruptcy filing. In a Chapter 7, all of your creditors are disclosed and all of your unsecured debt is discharged after a period of approximately ninety (90) days. If the debtor's total assets fall within the exemption guidelines, the debtor may qualify for filing a Chapter 7 case.

The debtor will need to provide the following information when meeting with the attorney:

Chapter 13 -- Personal Reorganization

As with a Chapter 7 bankruptcy, individuals and married persons may qualify for Chapter 13 filing, but this chapter of bankruptcy is best suited for persons who possess assets which do not fall within the exemption guidelines, or persons who operate a business as a sole proprietorship. Chapter 13 cases require that a payment plan be submitted to the court for approval and then upon approval, monthly payments to the trustee for a period of not more than three (3) years. Any unsecured debt remaining after the plan has expired will be discharged.

In addition to the above information, a debtor should also bring copies of the general account ledgers, accounts receivable and accounts payable for his sole proprietorship.

The US Bankruptcy Court is a federal court and requires that all documents be filed in a timely and appropriate manner. It is strongly recommended that debtors seek the advice and assistance of a bankruptcy attorney to guide them through the bankruptcy process.