One of the most important decisions to make when filing for bankruptcy is whether you should file for Chapter 7 or Chapter 13 bankruptcy. Both forms of bankruptcy can be very useful when you are trying to get out of debt. If you still aren't certain, you should consult with a bankruptcy lawyer.

Your Income Is Too Low

Chapter 13 is referred to as a wage earner's bankruptcy. The purpose of Chapter 13 bankruptcy is to gradually pay off some or all of your debt. If you believe that you will never be able to pay off your debts because of your income, Chapter 7 is a more sensible option.

You Don't Have a Lot of Property

When you file for Chapter 7 bankruptcy, your property will be liquidated and will be used to pay for the debts you owe. However, if you do not have a lot of property, you will still be able to discharge your debts through Chapter 7.

You do not have to worry about losing your necessities because there are many exceptions to Chapter 7. For example, you will be able to keep your clothing and a car you need to drive to and from work. Possessions you may lose are those that you used as collateral for a loan. 

You Don't Want to Wait a Long Time

A Chapter 13 case takes several years to be resolved. On the other hand, a Chapter 7 bankruptcy case can be resolved within a few months. During this period of time, you will need to work hard to pay off as many of your debts as possible. You will have to live frugally for five years.

In contrast, if you file for Chapter 7 bankruptcy, you will receive a fresh start. You may be able to successfully file for a loan because you will have fewer debts. As a result, creditors will be more willing to lend to you.

You're Working With an Attorney

It's best to file for Chapter 7 bankruptcy when you are working closely with an attorney. Then, you will be able to avoid making mistakes that could jeopardize your bankruptcy. 

For example, you could give money to a close friend or family member without realizing that you might negatively affect your bankruptcy case. With the help of an attorney, you won't have to worry about your bankruptcy being dismissed or converted to Chapter 13.

Talk to a lawyer to learn more about Chapter 7 bankruptcy law.