Chapter 7 vs. Chapter 13 Bankruptcy

Not all types of bankruptcy are the same. For example, Chapter 7 bankruptcy involves the liquidation of assets through an appointed trustee to pay off debts. Chapter 13 involves a payment plan arranged by the court to pay back at least a portion of the debt. Each person who files for bankruptcy will need to take a means test, which determines their ability to pay off their debt. Chapter 7 bankruptcy is generally for those who have little or no income to cover their debt. Those who have a good income may not qualify for Chapter 7 and may be able to enroll for Chapter 13. As an experienced Salt Lake City Chapter 7 and Chapter 13 lawyer, I can carefully examine your situation and make an assessment on how to proceed.