If you are finding yourself in need of a fresh start and bankruptcy is your only option our Maryland tax attorney can help you determine if you should file chapter 7 or chapter 13. The major dividing line between the two is income level. If you fall below a certain income level you can qualify for chapter 7 which is the simpler of the two. The following is a comparison of chapter 7 versus chapter 13.

  • Mortgages And Car Loans

    • Chapter 7 will most likely require you to return the house or car to the creditor.

    • Chapter 13 will allow you to keep the house or car as long as you keep up with a court ordered payment plan.

 

  • Debts Owed As Result Of Past Crimes

    • Chapter 7 will not allow your debts to be discharged if a creditor objects and can demonstrate your prior act (court conviction).

    • Chapter 13 may wipe out the balance if the outstanding balances are not paid in full by the end of bankruptcy.

 

  • Debts Owed For Child Support, Alimony, or Student Loans

    • Chapter 7 will not discharge support debts.

    • Chapter 13 requires you still pay the debt until paid in full.

 

  • Co-debtors On Personal Loans

    • Chapter 7 allows creditors to seek payment from co-debtors.

    • Chapter 13 doesn’t allow creditors to contact co-debtors until the end of bankruptcy.

 

  • You Have A Prior Bankruptcy

    • Chapter 7 will not allow you to re-file unless prior bankruptcy was chapter 13.

    • Chapter 13 allows you to re-file.

If you are still unsure of which option is best for your personal circumstance allow our bankruptcy professionals handle the details for you. Your new start is waiting.