Are you considering filing for Chapter 7 or 13 but aren't sure how to go about it? You're not alone. Millions of Americans find themselves in a similar situation each year.
What Is the difference between Chapter 7 and Chapter 13 bankruptcy?
Understanding the difference between Chapter 7 and Chapter 13 bankruptcy is important for anyone considering debt relief. Both types of bankruptcy can help individuals regain financial stability, but they serve different purposes and have unique eligibility requirements.
Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows people who qualify to eliminate most unsecured debts, such as credit card balances, medical bills, and personal loans. Many people who file Chapter 7 bankruptcy are able to keep essential assets through state and federal exemptions. The entire Chapter 7 bankruptcy process typically takes between four to six months, making it a faster way to achieve a fresh financial start. However, to qualify, you must pass a means test, which assesses your income and overall financial situation.
Chapter 13 bankruptcy, often called reorganization bankruptcy, is often a better option for people who need to restructure their debt. Instead of eliminating debts outright, Chapter 13 allows filers to create a court-approved repayment plan that lasts three to five years. Unlike Chapter 7, Chapter 13 does not require filers to sell assets, making it a preferred option for people with significant property or valuable assets they wish to protect.
Choosing between Chapter 7 and Chapter 13 bankruptcy depends on your financial circumstances, assets, and long-term goals. Consulting with a bankruptcy attorney can help you determine which option is best for your situation.
Why should you work with a bankruptcy lawyer?
Filing for bankruptcy can be complex, and even minor mistakes can lead to delays, dismissal of your case, or loss of property. Working with an experienced bankruptcy lawyer ensures your case is handled correctly from start to finish.
A bankruptcy attorney provides valuable guidance in determining whether Chapter 7 or Chapter 13 bankruptcy is right for you. They will assess your financial situation, help you complete the required paperwork accurately, and ensure that you meet all filing deadlines. Additionally, an attorney can represent you in court, handle creditor negotiations, and protect your rights.
One of the biggest advantages of hiring a bankruptcy lawyer is their ability to prevent creditor harassment, wage garnishments, and foreclosure proceedings. Once you file for bankruptcy, an automatic stay goes into effect, immediately stopping debt collection efforts. Your attorney can help enforce this protection and make sure creditors comply with the law.
If you are worried about the cost of hiring an attorney, many law firms, including DebtStoppers, offer free consultations and flexible payment plans. A skilled bankruptcy lawyer can help you navigate the legal system, avoid costly mistakes, and ultimately help make life affordable again.
Can you file Chapter 7 and Chapter 13 bankruptcy online?
It is sometimes possible to file bankruptcy online but the process is not as simple as submitting an online form. Chapter 7 and Chapter 13 bankruptcy require extensive documentation, including income statements, tax returns, debt information, and asset details. While online platforms can help organize paperwork, working with a bankruptcy attorney ensures that everything is filed correctly and efficiently.
Many law firms now offer virtual consultations and online bankruptcy services, allowing you to complete much of the process remotely. This is especially beneficial for individuals who prefer to minimize in-person meetings or need to file bankruptcy quickly. However, even when using online bankruptcy services, you will still need to attend a 341 meeting of creditors, which may be conducted via phone or video conference, depending on the court’s procedures.
Filing bankruptcy online without professional guidance can be risky. Errors in your filing may result in case dismissal, loss of property, or even accusations of fraud. Working with a qualified bankruptcy lawyer—whether in person or online—ensures that your case is handled correctly and that you receive the best possible outcome.
If you are considering Chapter 7 or Chapter 13 bankruptcy, contact DebtStoppers today to learn about your options. Our experienced attorneys offer personalized legal assistance, making the process smoother and helping you take control of your financial future.
How To File for Bankruptcy Online
A small selection of U.S. bankruptcy courts nationwide allows individuals to apply for Chapter 7 using electronic Self-Representation (eSR) software. This free software also allows individuals who are representing themselves to file Chapter 7 on the court’s website. It does not allow you to apply over the phone.
However, the vast majority of courts do not permit the use of electronic Self-Representation (eSR) software. You also cannot file Chapter 13 bankruptcy online without an attorney.
Although you cannot directly apply for bankruptcy online, there are many parts of the process that can be completed electronically. For example, every individual who files for Chapter 7 or 13 must take credit counseling and debtor education classes, both of which are typically available to take online. You can also receive notices about your case over email.
Additionally, the forms you need to file will be available on your local court’s website. Just keep in mind that, if you are not represented by a lawyer, you will likely need to print those forms and submit paper copies in person.
What Not To Do When Filing for Bankruptcy Online
In general, individuals cannot file for Chapter 7 or 13 via the internet or over the phone. Nonetheless, if you are represented by a licensed attorney, they can submit your documentation for you electronically, and you will not need to print and file paper forms.
When filing for Chapter 7 or 13 bankruptcy, it is essential that you provide your lawyer with complete and accurate details about your financial situation. Any lies or omissions will only complicate the process, so it’s vital that you give your attorney all of the information they need.
Difference Between Filing for Bankruptcy Online and Offline
One of the many advantages of working with an experienced attorney is that your lawyer can immediately file your bankruptcy forms online using the U.S. Courts’ electronic filing system. This is the case for both Chapter 7 and 13.
With rare exceptions, electronic filing is only available to lawyers, so if you choose to apply without an attorney, you will need to submit paper copies of every required document in person at the court. If you work with a lawyer, they will handle completing and submitting the forms on your behalf, and you will not need to print paper forms or travel to the courthouse to file them.
Typically, you cannot apply online or over the phone. But if you partner with an experienced lawyer, they will be able to submit all the required documents electronically.
If you want to take advantage of the internet submission options for Chapter 7 or Chapter 13 that are only available to attorneys, contact DebtStoppers today to schedule a free debt analysis. You can also reach us by phone at 844-546-7300.
