Every year, far more Chapter 7 bankruptcies are filed by Americans than all other bankruptcy chapters combined. While not as popular as Chapter 7 bankruptcies, Chapter 13 bankruptcies are the second most filed type of bankruptcy. Both chapters offer significant benefits.
Your assets, household income and expenses, and financial goals help determine under which chapter you should file bankruptcy.
Generally, a Chapter 7 bankruptcy is best if you are on a limited budget, have few valuable assets, don’t own a large amount of equity in any property, and are looking for a fresh start to eliminate unsecured debts like credit card debt, medical bills, broken leases, deficiency balances, or other unsecured loans.