Differences Between Chapter 7 & Chapter 13 Bankruptcy 

Chapter 7 bankruptcy, often called liquidation bankruptcy, involves keeping only what you can afford to pay for. This option is generally faster, allowing eligible individuals to eliminate most, if not all, of their unsecured debts in a matter of months. It’s suited for those with limited income who cannot pay back their debts over time.  

Chapter 13 bankruptcy is designed for individuals who have a regular income and wish to keep their property while also restructuring their debt. With this option, you will be put on a repayment plan and make installments to creditors. Repayment plans typically run for three (3) to five (5) years.  

Before choosing between Chapter 7 and Chapter 13, you must undergo the bankruptcy means test. This calculation assesses your income and expenses against the state's median to determine which type of bankruptcy filing you are eligible for. 

Put a Stop to Creditor Harassment  

Our Etowah County bankruptcy attorneys understand what you are going through, and we know the toll overwhelming debt can take on a person and their family. From threatening your financial stability to damaging your mental and physical health, the stress can feel crushing. If this is something you are going through, you are not alone, and you deserve help.  

Cobb Law Firm, LLC, is a trusted bankruptcy law firm providing compassionate legal assistance. No matter your situation, we are ready to help you uncover your options and determine if bankruptcy protection is in your best interests. 

Contact Cobb Law Firm, LLC, for a free, no-obligation case evaluation; call (256) 733-6102 or message us online. All bankruptcy consultations are confidential.