With the economy in flux, you may be worried about paying your bills. It’s totally understandable, and it’s something that you may have already been dealing with for a long time. The added stress of everything going on may make you want to finally take steps to resolve your debts.

If you want to stop stretching your pennies and want to be able to open your mailbox without collections letters, then you may want to consider bankruptcy. Whether you choose and qualify for Chapter 13 or Chapter 7 bankruptcy, there is a good likelihood that you will be able to discharge a portion of your debts and move forward with a better financial outlook.

If I go through bankruptcy, I’ll lose everything, right?

Bankruptcy exemptions are one of the tools you can use to help keep items in your possession if you go through a Chapter 7 bankruptcy. If you choose Chapter 13, then you may not need to give up anything at all. With Chapter 13 bankruptcy, you are placed on a kind of consolidated payment plan. As long as you make your payments on time for the length of the agreement, you’ll be able to come out on the other side without those debts and in a better financial situation.

How do you choose between Chapter 7 or 13 bankruptcy?

While these are technically two options, the likelihood is that you’ll only qualify for one. Depending on your income and if you’re working, you could qualify for liquidation bankruptcy, Chapter 7, or Chapter 13 bankruptcy, which is a wage-earner’s plan. Your attorney can discuss this with you more carefully, so you can see which kinds of bankruptcy that you can qualify for.