Filing for bankruptcy is a big decision and determining the type of bankruptcy that would be most beneficial to you requires careful thought and examination. Take this simple quiz to learn more about which type of bankruptcy may be best for you.
1. Do You Owe a Lot of Secured Debt?
Do you owe a great deal of secured debt, like back taxes and student loans?
- A) Yes.
- B) No, I owe mostly unsecured debts like credit card debt and medical bills.
2. Are You Over the Median Income?
Does your family make more than the median income for a family of your size in your area?
- A) Yes, but we still cannot afford our bills.
- B) No, we earn under the median income for a family of our size in our area.
3. Do You Have a Lot of Assets?
Do you have assets that can be liquidated or you wish to be liquidated to help you pay off your debts?
- A) No, we either don’t have a lot of assets or we wish to keep the assets we do have.
- B) Yes, we would like to see what we can liquidate to help reduce or eliminate our debt.
4. Do You Want to Satisfy Your Debts?
Do you have a strong desire to pay the debt you’ve accrued, but you just need more time in which to do it?
- A) Yes.
- B) No, I’m fine with my debts being discharged if possible.
5. Does It Matter to You How Long a Bankruptcy Stays on Your Credit Report?
- A) Yes, I want it off my report as quickly as possible.
- B) No, I don’t mind waiting a little longer for the bankruptcy to fall off my credit report if it means I no longer owe my bills.
If you selected mostly A’s, a Chapter 13 bankruptcy may be right for you. A Chapter 7 bankruptcy won’t liquidate secured debt like taxes and student loans, but gives you a longer repayment period to satisfy those debts. It also typically will fall off your credit report in 7 years.
If you selected mostly B’s, a Chapter 7 bankruptcy might be right for you. A Chapter 13 bankruptcy won’t discharge any debts, whereas after a Chapter 7, there’s a strong possibility that you will start over fresh, owing nothing. However, a Chapter 7 bankruptcy tends to stay on a credit report for up to 10 years.
Contact Beecher & Conniff Bankruptcy Lawyers Today
To learn more about the different types of bankruptcy and to discuss your unique situation, contact our office today by calling 253-627-0132.