Filing under Chapter 7 can help you discharge unsecured debts, like credit card debt and medical debt, so you can get a fresh start. Your creditors are paid by selling (or liquidating) any nonexempt property you own. If the liquidation sale is insufficient to pay off the debts, the remaining deficiency can be discharged entirely.

To qualify for Chapter 7 relief, your income and living expenses cannot exceed thresholds imposed by the Bankruptcy Code. If your income is above the statutory threshold, you may be required to file under Chapter 13 instead.

Filing under Chapter 13 can help you pay your debts without liquidating your assets through a Repayment Plan. Your creditors are paid through affordable monthly payments over a period of three and five years, with monthly payments calculated based on your income and living expenses.

To qualify for Chapter 13 relief, you must have a stable, regular income and your total debt cannot exceed $2,750,000.

Filing under Chapter 11 is more common for businesses than for consumers, although individuals with partially business assets and debt (like sole proprietors) may benefit from the chapter’s flexibility. The purpose is to reorganize your business’s financials so you can continue to operate.

Some individuals can discharge their student loan debts by filing separate adversary proceedings and proving “undue hardship.” The Federal Rules of Bankruptcy Procedure require that all proceedings to determine the dischargeability of student loans be brought as adversary proceedings. Generally, individuals must already be on an income-driven repayment (IDR) plan to qualify.

An adversary proceeding is a civil action (lawsuit) filed in or removed to the bankruptcy court. The Federal Rules of Bankruptcy Procedure require that certain proceedings be brought by adversary proceeding, including proceedings to determine the dischargeability of student loans debts.

Individuals whose debts are primarily non-dischargeable, like most student loan debts and some tax debts, can still benefit from legal representation. If you need assistance with these kinds of debts, whether it’s deciding on a payment plan or understanding what you owe, we’re here to help.