What is the difference between Chapter 7 and Chapter 13? Which is best for me?
The difference between a Chapter 7 bankruptcy and a Chapter 13 is very important. If your income is below the median income for a similarly sized family in North Carolina, you can file a bankruptcy petition is Chapter 7. Such a bankruptcy, sometimes called a “straight” or liquidations bankruptcy, is short and sweet. It discharges all unsecured debt. The only possible problem is that you must be up to date with the payments on all secured loans, and all your assets must fit under the exemptions provided by the State of North Carolina. We will discuss these issues at your initial consultation. Likewise, if you are above median income but have a great deal of secured debt or if you have extraordinary expenses, you may also be able to file a Chapter 7 bankruptcy by passing the “means test.” The means test and the determination of who can file Chapter 7 when income is above the median is extremely complex and best left for your consultation. Again, if you bring us up to date accurate inform
