If you are eligible for both Chapter 7 and Chapter 13 bankruptcy, then it is up to you to determine which is the best option to suit your needs. A bankruptcy attorney can help you choose the best option. However, you should be aware that you may not actually have a choice.

 

Make sure that you know the Chapter 7 requirements under the new bankruptcy law. For example, if your average monthly income over the 6 months preceding when you filed is greater than the median monthly income for a family your size in your state, then you cannot file for Chapter 7. Furthermore, you need to take the “means test,” to see if your disposable income puts you in a position to file for Chapter 13, which involves repayment of some debts. For more on this, see out sections on eligibility for Chapter 7 or Chapter 13.