Chapter 7

A person more typically consider filing under Chapter 7 instead of under Chapter 13 when

  • all or most of their property is “exempt”
  • their income is less than median income
  • no need to save home from foreclosure
  • no need to avoid “underwater” second mortgage

Chapter 13

Chapter 13 may be more appropriate than Chapter 7 if a person

  • has substantial non-exempt property
  • owns a business
  • does not pass the “means test”
  • needs to save their home from foreclosure
  • need to avoid an “underwater” second mortgage