Which is better chapter 7 or chapter 13

Which is better chapter 7 or chapter 13 is a bit of a trick question.  The answer is, of course, that it depends on what you are eligible for, what your income is, what your debts are, and your goals.  All of these factors play a part in determining which chapter is better for a specific situation.

When chapter 7 is better than chapter 13

Chapter 7 is better, generally, for people who have lower income, few assets, and can afford to stay current on things they need to keep, like their car.  A 7 is relatively short, about 5 months from beginning to end, and is less expensive than the 13.  If your income is under the median income for your family size, you will probably qualify for chapter 7.

When chapter 13 is better than chapter 7

Chapter 13 is better, generally, when your income is over median, and you want to keep property that you have fallen behind on.  If you’re behind on your car or house payments, a 13 will allow you to catch up on those payments over 3 to 5 years.  Better than a 7 in some cases, the 13 can lower your car payment if you qualify, and can “strip off” second mortgages and home equity lines of credit, if you qualify.

Chapter 7 vs chapter 13 on credit report

Both kinds of bankruptcy are reported on your credit report.  Ten years for 7 and seven years for 13.  It is not true, however, that just because your bankruptcy appears on your credit report, that it is hurting your score.  In fact, many of my clients use my credit recovery program to quickly get good credit scores shortly after bankruptcy.  Credit recovery is also possible while you are in a 13.

As a certified credit counselor and board certified bankruptcy specialist, I have seen thousands of credit reports with bankruptcy being reported and FICO scores of 650 to over 700.  It is common to see chapter 7 FICO scores recover in about a year, when following the proper program.  It is also possible to rebuild credit while in a chapter 13.   I’ve developed programs which are easy to follow and very effective for both chapters.

When you’re considering which bankruptcy chapter to file, you ought to consult a certified specialist to help you.  It’s free.  No matter how much internet research you do, it’s never as good as checking with a seasoned professional.

To learn more about how to chose the best chapter for your needs, and how to recover your credit, call West Law Office for a free consultation.

We offer in-office, video and telephone appointments.

Call today; you’ll sleep better tonight.

We can do your entire case online.

Call (937) 748-1749 (Dayton/Springboro) or (614) 852-4488 (Columbus).

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