Chapter 7
A person more typically consider filing under Chapter 7 instead of under Chapter 13 when
- all or most of their property is “exempt”
- their income is less than median income
- no need to save home from foreclosure
- no need to avoid “underwater” second mortgage
Chapter 13
Chapter 13 may be more appropriate than Chapter 7 if a person
- has substantial non-exempt property
- owns a business
- does not pass the “means test”
- needs to save their home from foreclosure
- need to avoid an “underwater” second mortgage