Q: Is Chapter 7 or Chapter 13 better for credit card bills?
A:
Many people who file bankruptcy because of high credit card debt choose Chapter 7, because credit card debt is unsecured and can generally be discharged (wiped out) in bankruptcy.
There are other considerations, though. For example, people who have non-exempt assets that they want to keep may choose to file Chapter 13 bankruptcy instead, so that they can keep their property. Or, Chapter 13 might offer a solution for someone with high credit card debt who doesn't qualify for Chapter 7 bankruptcy.
A local bankruptcy lawyer can look at the specifics of your situation, tell you whether you are likely to be eligible for Chapter 7 bankruptcy and point out any other issues that might help determine which type of bankruptcy is best for you.
*Kevin Chern is an Illinois licensed attorney who has practiced in federal consumer bankruptcy law and consumer protection law for the last 21 years. He is the Managing Partner of UpRight Law. Kevin's law partners are licensed in all 50 states and work in conjunction with Mr. Chern to provide bankruptcy and consumer legal services in all 50 states. Mr. Chern's answers to the questions are intended for informational purposes only and are not intended to be legal advice. Use of the answers does not establish any attorney-client relationship. For legal advice, you should consult with an attorney licensed to practice law in your state and with appropriate expertise.
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