Bankruptcy is a legal process that can help individuals and businesses discharge their debts or develop a repayment plan. Bankruptcy is usually considered a last resort option when debts have become unmanageable and there seems no other way out. The two most common types of bankruptcy are Chapter 7 and Chapter 13. But how do you know which chapter is best suited to your situation? In this blog post, we’ll explore the differences between Chapter 7 and Chapter 13 bankruptcy and help you determine which is right for you.

Chapter 7 Bankruptcy



Chapter 7 bankruptcy is the most common type of bankruptcy. This type of bankruptcy is available to individuals and businesses. It involves liquidating your assets and applying the funds to pay off creditors. Chapter 7 bankruptcy is best suited for individuals or businesses that have limited assets and a large amount of unsecured debts, such as credit card debt. If you qualify for Chapter 7 bankruptcy, your debts are typically discharged within 4-6 months of filing.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is another type of bankruptcy that involves a repayment plan. This type of bankruptcy is available to individuals only. Chapter 13 bankruptcy is best suited for individuals who have a steady income, some assets, and a significant amount of secured debt (like a mortgage or car loan). Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy does not involve liquidating your assets. Instead, you will enter into a repayment plan over 3-5 years to pay off a portion of your debts.

Who Should File for Chapter 13 Bankruptcy?

If you are struggling with debts but you have a steady source of income and some assets that you don’t want to lose, Chapter 13 bankruptcy may be the right option for you. With Chapter 13 bankruptcy, you can keep your assets and develop a manageable repayment plan that fits your budget. This type of bankruptcy is also a good option if you have significant amounts of non-dischargeable debt like tax debts or student loans. It is important to note that under Chapter 13, some debts, such as credit card debts and medical bills, do not necessarily need to be paid in full.

At J Madison Brooks III Attorney at Law, We can Assist the Mississippi Public with Bankruptcy Matters

At J Madison Brooks III Attorney at Law, we understand that bankruptcy can be an overwhelming process. Our team of attorneys has experience helping Mississippi residents navigate the complexities of bankruptcy law. We can help you determine whether Chapter 7 or Chapter 13 bankruptcy is the right option for you and provide guidance every step of the way. We understand that Mississippi residents may be hesitant about the cost of legal services, which is why we offer a free initial consultation to discuss your options and legal fees.

Deciding to file for bankruptcy is a big decision, and it’s important to choose the right chapter of bankruptcy to fit your needs. Chapter 7 and Chapter 13 bankruptcy have significant differences that can affect the outcome of your case. If you are a resident of Mississippi struggling financially, J Madison Brooks III Attorney at Law can help. We can assist you with bankruptcy matters so that you can obtain financial relief. We will evaluate your financial situation and help you determine which chapter of bankruptcy is right for you, and we will guide you through the bankruptcy process. Contact us today for a free consultation!