${site.data.firmName}${SEMFirmNameAlt}
New Mexico Lawyers Serving New Mexico's Legal Needs Since 1997

Chapter 7 vs. Chapter 13 Bankruptcy: Which One is Right for Me?

Once you’ve decided that filing for bankruptcy is the right solution for your financial dilemma, it’s time to choose which type of bankruptcy is appropriate. For most individuals or small business owners, the most obvious choices are Chapter 7 or Chapter 13 bankruptcy. The choice between these two chapters will ultimately depend on your own debts, assets, income and financial goals.

Chapter 7 bankruptcy allows a debtor to discharge most types of unsecured debt. After filing, a trustee will be appointed, who will sell any of your valuable nonexempt property to repay your creditors. A typical Chapter 7 case normally takes several months to complete the paperwork, sell nonexempt assets and discharge debt. However, for individuals whose debts are primarily “consumer” debt, Chapter 7 bankruptcy is generally only available to those who can pass a “means test” showing that their income is less than the median amount in their state. Thus, if you are a high-income earner, you may not be eligible to file under Chapter 7.

Chapter 13 bankruptcy allows a debtor to either fully or partially repay creditors through an agreed-upon repayment plan, which makes it possible to discharge debt without liquidating any assets. This type of plan will typically last anywhere from three to five years, depending on your income. Although you will be required to have a regular source of income to file under Chapter 13 and make monthly payments, there is no minimum or maximum income requirement. However, your unsecured debt cannot total more than $383,175 and your secured debt cannot total more than $1,149,525.

Filing for bankruptcy may seem overwhelming, but an experienced attorney can help you choose the most appropriate steps forward and guide you through the process from start to finish. Consult a trusted Albuquerque bankruptcy lawyer for further guidance.  

No Comments

Leave a comment
Comment Information

Watch our videos to learn of the many ways we can help you with your legal needs.

Email Us For A Response

How can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Firm Location:

Giddens, Gatton & Jacobus, P.C.
10400 Academy Road NE
Suite 350
Albuquerque, NM 87111

Phone: 505-273-3720
Fax: 505-271-4848
Map & Directions

Firm Numbers:

  • facebook
  • linkedin
  • gplus
  • twitter
Review Us