Chapter 7 & 13 circumstances

Bankruptcy is complicated but your income is the basic determining factor that decides which chapter you can file. There are many circumstances for which someone can file...usually having more debts than income is the big one. Google search or make an appointment with a local bankrupcty attorney for more information.

If you want to get a discharge from most of your debts and start your life afresh, then you should go for Chapter 7. However, in order to file Chapter 7, you need to clear the means test. If you want to file bankruptcy and unable to clear the means test, then you will have to file Chapter 13. In this chapter, you'll get a payment plan which will help you pay off your debts. It is a type of bankruptcy filing wherein the borrowers pay off their debts within a time span of 3-5 years.