If you are thinking about filing for Chapter 7 or Chapter 13 bankruptcy, it is important that you understand each type of bankruptcy involves a different set of circumstances.  For this reason, Chapter 7 may be more appropriate for some individuals and other people may find that Chapter 13 is a better choice for their financial situations.

Generally speaking, people file for Chapter 7 when they are overwhelmed by debt and lack the financial means to repay their debt.  People who successfully file for Chapter 7 must pass a means test, which proves that they lack the income to repay their creditors.  After people have successfully filed for Chapter 7, their debt is discharged and they are given a fresh start.

People who choose to file for Chapter 13 usually do so because they want to avoid the liquidation process.  They may also wish to repay their creditors over the period of three to five years by creating a feasible repayment plan. 

If you live in South Texas and you would like to be advised of the differences between Chapter 7 and Chapter 13, contact the Malaise Law Firm and speak with a South Texas bankruptcy attorney.