How do I know which bankruptcy is right for me?

The  first thing you need to do is learn about the options available to you. Bankruptcy is a serious matter. You should educate yourself as much as possible about the different types of bankruptcy. If you need help deciding which type of bankruptcy best fits your situation, you may want to talk to a Houston bankruptcy attorney.

Chapter 7 Bankruptcy

Chapter 7 is the most common form of consumer bankruptcy, and is meant for individuals who have a low income and few assets. Chapter 13 is a reorganization bankruptcy that is designed for individuals who want to repay some or all of their debts. Chapter 7 bankruptcy In a Chapter 7 bankruptcy, you must decide whether you want to keep your property or give it up. You must pay to keep property that is exempt under the law. If you don’t pay, the court will take the property and sell it to pay your creditors. Chapter 7 bankruptcy is called liquidation or straight bankruptcy.

The advantages of Chapter 7 bankruptcy are: It’s fast. You can usually get a discharge within a few months. You can usually get a discharge within a few months. It usually does not require you to pay an attorney. It usually does not require you to pay an attorney. You may eliminate or restructure some of your debts.

The disadvantages of Chapter 7 bankruptcy are: You may lose some of your property. You may have to pay your unsecured creditors out of your pocket.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is sometimes called reorganization or wage-earner’s bankruptcy. In a Chapter 13 bankruptcy, you create a plan to repay some or all of your debts. You do not have to give up your property.

The advantages of Chapter 13 bankruptcy are: You may be able to retain property. You may be able to retain property. You may be able to get lower monthly payments on your debts. You may be able to get lower monthly payments on your debts. It may be easier to qualify for a Chapter 13 bankruptcy.

The disadvantages of Chapter 13 bankruptcy are: It takes more time. It can take several months or more to complete a Chapter 13 bankruptcy. It can take several months or more to complete a Chapter 13 bankruptcy. It may cost more than a Chapter 7 bankruptcy. It may cost more than a Chapter 7 bankruptcy. You may have to pay your unsecured creditors.

Do I need to hire a lawyer?

You can file for bankruptcy without hiring a Houston bankruptcy attorney. But in most cases, it’s a good idea to have a lawyer you trust to guide you through the process.