Here's the fundamental difference between Chapter 7 and Chapter 13 Bankruptcy:

Chapter 7 “wipes away” your Debt.
Chapter 13 is a re-payment plan for that Debt.

You could fill a Library explaining all the little details of that difference, but in the end, that’s the bottom line.  In Chapter 7, you get out of paying.  In Chapter 13, you’re stuck paying.  Plus, the Legal Fees in a Chapter 13 run thousands and thousands of dollars more than in a Chapter 7.

To be clear, some Debt does not get wiped away in a Chapter 7.  Child Support and Student Loans won't go away.  If a person chooses to keep a car, or a home on which they owe money, they have to agree to have that Debt taken out of their Chapter 7 and continue paying for it

In Chapter 13, a percentage of the total Debt is repaid.  That can range from a low of about 25% of the total debt up to 100%, or all of it.  Beyond that, Chapter 13 Legal Fees are way higher than those for a Chapter 7 case.

Here’s where I’m different.  I only handle Chapter 7 cases.  That’s a good thing, because I have every reason to make sure a person Qualifies for Chapter 7 before giving up and referring them to a Chapter 13 Specialist. 

“Qualifying” for Chapter 7 basically means that a person does NOT have too much income, or too much money left over at the end of the month.  That's a problem most callers DO NOT have.

If a person makes too much money, or has too much left over after they pay all their bills (and there are certain, very specific amounts that the Law allows to be spent on certain things, like housing, car expense, food, and so on), then they cannot file a Chapter 7 Bankruptcy.  In that case the only Bankruptcy Option they have is to enter into a re-payment plan of some kind under Chapter 13.  

Because my Office only handles Chapter 7 Bankruptcy Cases, I have every reason to try everything humanly and legally possible to get a potential Client qualified.  If I can’t qualify a person for Chapter 7, (and I’ve had a 100% success rate at getting each Client that I have represented Discharged for nearly 20 years), then I lose their business.  I have to send them to a Chapter 13 Attorney.  

And while I’m not even suggesting that any other Lawyer would be less than completely honest, you’ve got to admit, if their Office also handles Chapter 13 Bankruptcy Cases, and it seems that qualifying for Chapter 7 might not be so easy at first glance, they do lack the incentive I have to leave every stone unturned in my effort to try and work it out.  In fact, whereas I lose the potential business, they wind up making more money.

Filing under Chapter 7 is the better option not only because the Legal Fees are so much less than in a Chapter 13, but also because a person will be done and over with the whole process, essentially debt-free, and on the road to rebuilding their Credit, within about 4 months under Chapter 7.

If a person’s income, expenses, allowances and circumstances can be “adjusted” to fit within requirements and limitations of a Chapter 7 Bankruptcy, then they can pay a lot less to the Lawyer, and just get out of Debt quickly.

In some cases, there is simply no way for a person, or family, with too much income, or too few expenses, to file for a Chapter 7.  In those cases, Chapter 13 still beats the living daylights out of one of those over-priced, slickly advertised Debt-Reduction schemes.  I guarantee that no one reading this has EVER met anyone who recommended one of those operations.

Chapter 13 Cases take years and years.  In some cases, they can take up to 5 years to complete, and only then, after they have finished the long payment plan, can a person start to rebuild their Credit.

In the end, and for all of that, anyone looking to file a Bankruptcy Case, or even considering it, should absolutely call around and do some homework before they decide who to hire.  Nothing beats assessing a Lawyer’s approach and attitude like calling their Office and getting some answers to your questions.

Even though I'm really good at what I do, I understand I’m not the Lawyer for everyone.  But you won’t know who’s a good fit, or even a better fit for you, until you pick up the phone and start dialing some numbers.