There has to be a clear and easy answer to that headline-posed question above, right? After all, Chapter 7 and Chapter 13 are clearly distinct bankruptcy options with altogether different parameters. Shouldn’t there be a relatively quick and simple process for determining the road to take in seeking the financial relief provided by bankruptcy?
Well, there is undeniably a process, but few people would deem it so slam-dunk simple that a debtor can arrive at a sound conclusion over a cup of coffee.
You see, there are formulas and so-called “means testing” involved that help a consumer determine the optimal path to take. A debtor might indeed qualify for one, but not the other, form of bankruptcy. In some instances, a party might be able to file for either Chapter 7 or Chapter, necessitating a well-considered choice.