Chapter 7 or Chapter 13: What Information Helps an Attorney Evaluate Your Options?
Choosing a bankruptcy chapter starts with your financial facts and goals. The right consultation looks beyond the total amount of debt to income, property, household expenses, secured loans, and any urgent collection activity.
Understand the basic difference
The federal courts describe Chapter 7 as a liquidation process in which nonexempt property may be sold, subject to applicable protections and eligibility requirements. Chapter 13 generally involves a repayment plan for an individual with regular income, usually lasting three to five years. Neither chapter promises that every debt disappears or that every asset can be kept.
Bring a complete financial picture
Gather recent income records, tax returns, bank statements, mortgage and vehicle-loan statements, and a list of household expenses. Include creditor notices, lawsuits, judgments, and information about support or tax obligations. Identify property you own jointly with someone else.
Tell the attorney about prior bankruptcy cases, recent property transfers, payments to relatives, expected refunds, possible inheritances, and legal claims you may have. If you are unsure whether something counts, list it for discussion. Accurate disclosure allows meaningful advice.
Identify what you need to protect or address
Explain whether your priority is dealing with unsecured debt, addressing missed mortgage payments, keeping a vehicle, or responding to a lawsuit. Bring any scheduled sale, repossession, or court notice to the attorney’s attention immediately. A consultation does not itself create bankruptcy protection.
If keeping property is important, its value and the debt against it deserve careful review. Do not assume that the same exemption rules apply to every person living in Pennsylvania or New Jersey; the facts and applicable law need evaluation.
Ask what happens after filing
Discuss eligibility, required education, document requests, costs, trustee review, and what ongoing payments would be required. For a proposed Chapter 13 case, ask how the budget supports the plan. For Chapter 7, ask specifically about property risk and debts that may remain. Do not transfer assets or take on new debt to prepare for filing without advice.
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Discuss your Pennsylvania or New Jersey matter
Ames Law Group LLC serves clients in Delaware, Chester, Montgomery, Philadelphia, and Bucks counties in Pennsylvania and throughout New Jersey. The office of solo attorney Patricia A. Ames, Esq., is at 24 Veterans Square, Media, Pennsylvania 19063.
General information only; this article is not legal advice and does not create an attorney-client relationship. Every case is different; results cannot be guaranteed.
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