Introduction
Each of Chapter 7 and Chapter 13 Bankruptcy has its pros and cons, and if you want to decide on the chapter bankruptcy to file, you need to first of all determine whether you qualify for these two types. Find out the bankruptcy that you qualify for will help you to determine the one that you should apply for. There are some steps that one can take in order to determine the bankruptcy to apply for.
Things to do
The first step that you need to do when trying to decide the chapter bankruptcy to apply for is to determine whether you are qualified to apply for Chapter 7 bankruptcy. One will qualify to apply or Chapter 7 if he or she does not have a monthly income that is more than the monthly median income. If you have a monthly income that is more than the median income in a particular state, you have no other option other than to file for chapter 13.
The second step is to decide the chapter bankruptcy that you prefer if you are qualified to apple for both Chapter 7 and Chapter 13. When you file for Chapter 7, all of your debts will be forgiven, while with chapter 13, you still have to pay a portion of your debts.
The third step when deciding on the chapter bankruptcy to file for is to determine whether you have some assets that you would not like to lose when you file for bankruptcy. If you do not have any assets that you want to hold on to, then you should file for chapter 7. However, if you have some assets that you would like to keep, then you should file for chapter 13 bankruptcy.
Fourthly
The fourth step when deciding on the chapter bankruptcy to file for is to determine whether you will be able to pay up your debts within the five year period that you will be given when you file for chapter 13 bankruptcy. However, the fact that you have filed for chapter 13 does not mean that it is cast in stone. You can still be able to convert chapter 13 to chapter 7 in states such as Georgia. To convert from chapter 13 to chapter 7, you will need an attorney to manage this conversion. You need to have all the supporting documents before you make your appointment. Once you present your case, you will need to wait for the completion of an investigation into the matter.
Finally
The fifth step when choosing the chapter bankruptcy to file is to decide whether you can decide to pay for your debts according to the schedule that you have been given. If at the end of the day you find that you are still unable to pay your debts according to the schedule given in chapter 13, you can still file for chapter 7 bankruptcy and keep some of your prized assets. In both of these two chapter bankruptcy, the debtor has to go for an approved credit counseling course.
