If your area is under enormous financial pressure and unable to pay your debts, then filing bankruptcy may be the only solution we have. As an individual you have a choice of bankruptcy in two chapters. An explanation of two chapters – and how to select the chapter is best for you – below. Chapter 7, you can Appli ka for bankruptcy under Chapter 7 if you pass the “means test”. This test is estimated by subtracting the gross income and assets and liabilities and your spending over the last six months before it filed for bankruptcy. These data are then compared with the average median income for a family of similar size in Texas. If net income is lower, then you are entitled to registration under Chapter 7, otherwise appears under Chapter 13. When the file under Chapter 7, the court appoints a trustee to sell your assets unprotected or non-exempt to pay creditors tion. Your case could be released within six months if they file for bankruptcy under this chapter. Since normally your house and cars will be exempted, you will be able to maintain these assets. If your home and car Ari risk because of not being able to fulfill its obligations, then you understand why maintaining a qualified bankruptcy lawyer Allmand and Lee to file for Chapter 7 your bill is ; a wise choice. Chapter 13 Explained Unlike Chapter 7, Chapter 13 filing which gives you the ability to repay debts over a l & # xE4; long period of time, usually between 3-5 years. You can also keep all your assets. As with Chapter 7, when files Chapter 13 bankruptcy attorney in FOR, r your name, the creditors can no longer be able to foreclose on your computer or take your property. By law they must stop harassing directly. Once the file under Chapter 13, you must submit a repayment plan with the court, specifying your plan to pay your debts. Your bankruptcy lawyer can try to find some of your loan is discharged, so you can pay the rest. & # XD; If the plan is accepted, the court appoints a trustee to manage your repayment plan to ensure that we stick to it. & # XD, Chapter 13 or 7? Usually (depending on the situation), individuals seeking to file for bankruptcy under Chapter 7 of the F & # xE5, most of their debts discharged. The time taken to do this is also much smaller compared to registration under Chapter 13. The problem is that with the new tougher laws introduced after October 2005, you may find it difficult to file under Chapter 7 and may have a file under Chapter 13. Most of your assets can also be dismissed by the court administrator to satisfy creditors. This may not be in accordance with Chapter 13. Accordingly, Chapter 13 allows you to stay in control when you chart a repayment plan extends three to five years. If you are wary of losing many of your assets and have nothing in a shelter ngre repayment plan, then you can ask your bankruptcy attorney if you can file under Chapter 13. But if you want your case to be placed in a short time and can not come up with a long-term plan to raise funds to pay creditors, then the registration under Chapter 7 would be a better option. So, comparing both the chapter with your bankruptcy attorney before deciding which chapter is a better choice.