If you have come to the conclusion that filing for bankruptcy is the best financial path forward for you, the next step in that process is determining which type of bankruptcy for which you should file. Most people either file for Chapter 7 or Chapter 13 bankruptcy, but which is right for you? In Duluth, the Cornwell Law Firm has helped many clients facing this exact question figure out what type of bankruptcy to file and provided top tier legal assistance and every step of the process. To learn more about how our office can help, call or contact us now to schedule a consultation.

Important Bankruptcy Factors

There are many factors that must be taken into consideration when determining which type of bankruptcy is right for you. Some of the most important elements that you and your attorney will review include the following:

Length of Proceedings

Chapter 7 bankruptcy proceedings are faster than Chapter 13. Typically, Chapter 7 bankruptcy will take a few months to complete from the initial filing to final discharge, whereas Chapter 13 bankruptcy almost always has a repayment plan that lasts either three or five years.

Property Owned

Another factor to consider is whether the debtor is willing to part with their property in order to satisfy the bankruptcy requirements. Under Chapter 13, no property is liquidated as part of the proceeding, but under Chapter 7 any non-exempt property or assets may be liquidated to pay off creditors and satisfy debts.

Income Level

The income level of the debtor may also restrict the type of bankruptcy that can be filed. Chapter 7 bankruptcy is only available to low- or no-income individuals that have an income that is less than the median income of the state or who can pass the Means Test. Conversely, Chapter 13 bankruptcy mandates a repayment plan, so a regular income is required in order to file for this type of bankruptcy.


The final factor is whether the debtor is currently or is expecting to face foreclosure on their home as well as what they wish to do with the property. Both Chapter 7 and Chapter 13 bankruptcy can place an automatic stay on foreclosure proceedings, and Chapter 13 can establish a repayment plan that helps the debtor get back on track with mortgage payments. Chapter 7 can liquidate other assets in order to pay any amounts owed on the mortgage, but if the debtor cannot continue to make payments after the bankruptcy proceeding is complete, they may face foreclosure proceedings again.

Call or Contact Our Office Today

Do you have more questions about what type of bankruptcy filing is right for you? If so, the experienced and knowledgeable Georgia bankruptcy lawyers at the Cornwell Law Firm are here to help. Call the office or contact us today in Duluth to speak with one of our lawyers and schedule a consultation of your bankruptcy claim.

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