Chapter 7 or 13

Letter to “Ask Leon”

Thanks in advance for your answer. My question is: I live in TN. I am a single mom w/3 depen.for tax purposes and I know I need to file bankruptcy. I just don’t know which one is more appropriate for me. I own my home, have a Home Equity Line of Credit that is maxxed out, and about 25K in medical bills/credit cards. I make 32K per year plus child support. Why would I NOT want to file chapter 7? Does 13 have an advantage or is it seen as more noble in the eyes of creditors? I can’t decide.

Leon Says…

You have raised a very legitimate question, but there is just not enough information given. That’s NOT your fault. I don’t think it is realistic to transmit all of the info in an email that a lawyer will need to see to provide that kind of advice. This kind of analysis best requires a live conversation.

Please go see an attorney right away who specializes in bankruptcy law. Making the wrong choice could result in you losing your home. Among other things, the lawyer will need to be told your total income from all sources during the past 6 months, what your current necessary living expenses are, the current market value of your home, and all amounts that you owe on it.