Don't assume chapter 13 is your only bankruptcy option

An important early step in the bankrupcty process is to figure out if you can file a simpler chapter 7 case, or if you will need to work out a chapter 13 repyament plan for some of your debts. One of the reasons to organize paperwork for bankruptcy is to help determine what’s possible in a given situation. It’s true that there are income limits involved, but an attorney who makes a snap judgment based on your annual income might be missing something important.

Case in point: I recently met with a new client who had been told by another attorney that a chapter 13 bankruptcy was the only option, but just a couple of minutes into our free consultation, I disagreed. Listening carefully, I realized that this individual’s income had changed recently for the better, and that there was a window of opportunity to file under chapter 7 rules instead. This was a situation that hinged on understanding how timing works in bankruptcy cases. What it means for my client is that the bankrupcty discharge will come about four-and-a-half years sooner than it would have in a chapter 13 case, leaving that client free of those debts and ready for a fresh start much, much sooner.

Any free consultation you receive from me comes with my focused attention, because that’s the only way I know to give you the best possible advice.