Deciding to file bankruptcy is only the beginning. Next, you’ll have to determine which type of bankruptcy best suits your needs, type of debt and financial factors such as your household income. Narrow down your options by keeping these three factors in mind.

Examine the Type of Debt You Have

Despite the common misconceptions, there are some types of debts that can not be removed from your record. These include alimony, child support, restitution for a crime and more. People with an extortionate amount of debt and no hope of paying it off completely may find Chapter 7 to be the most appropriate choice. Those disqualified from Chapter 7 by their income and looking for a relief from collection proceedings may choose Chapter 13 instead.

Determine the Desired End Result

Of course, no matter the type of bankruptcy you choose, you’ll want to finish the process with a plan to free yourself from the burdens of debt. To determine whether Chapter 7 or 13 bankruptcy is most appropriate for your needs, take a look at the details.

Are you looking to finish the process within 6 months or do you need to find a debt repayment plan, which may last up to 5 years? A timeline is important. Chapter 7 bankruptcy allows you to discharge creditors in a short time period but you may need to liquidate your assets to do so. Meanwhile Chapter 13 provides you with the ability to repay debts over a longer period of time while protecting your home and car in most cases.

Do Your Homework and Consult with a Professional

Beginning to review your options for bankruptcy is a great start. You’ll need to understand the advantages and disadvantages of each type before making a decision. However, there’s no need to go through the process alone. Having an advocate at your side makes it easy to get the results you desire and maintain your dignity.

Reach out to Bosserman Law, a debt relief agency, to find the right solution to pay off your debts while protecting yourself and your loved ones.