Chapter 7 or Chapter 13: Questions to Bring to Your Attorney

Search for bankruptcy information online and you will quickly run into the terms Chapter 7 and Chapter 13. Many people read a few pages, try to decide which one sounds more like them, and then feel more confused than when they started. Here is the honest truth: choosing a chapter is not a decision you are supposed to make alone at the kitchen table. It is one of the main things an attorney helps with.

What you can do is walk in with good questions. This article does not tell you which chapter you qualify for, because that depends on facts only your attorney can weigh. Instead, it gives you a set of questions to bring so you leave the first meeting with answers that apply to your life.

A very short orientation

In general terms, a personal Chapter 7 case is the one people usually think of when they hear bankruptcy: a process where many unsecured debts may be wiped out. A Chapter 13 case is built around a repayment plan, where you make payments over a period of time under court supervision, often while keeping certain property you are worried about losing. Each has its own rules, its own requirements, and its own tradeoffs.

The firm handles personal and business bankruptcy matters, including Chapter 7, Chapter 11, Chapter 12, and Chapter 13 cases. Your attorney will tell you how each option applies to you.

Questions about whether you fit

• Based on what I have told you, which chapters might be open to me, and which are not?
• What parts of my income and household situation matter most to that answer?
• Does it matter that I am married, or that my spouse does not owe the debt?
• Have my recent financial moves, such as paying back a relative, caused any concern?
• If I do not qualify for one option, what are the alternatives, including options outside bankruptcy?

Do not be shy about that last question. A good attorney will tell you when bankruptcy is not the best fit, or when another approach might make sense. The goal of a consultation is the right answer for you, not a filing for its own sake.

Questions about your property

For many people, the real fear is not the debt itself. It is losing the house, the truck they need for work, or something that matters to the family. These are exactly the questions to put on your list.

• What happens to my home if I file? What if I am behind on the mortgage?
• What happens to my vehicle, especially if I still owe on it?
• How are my retirement savings treated?
• Is there anything I own that I should talk to you about before we go further?
• Are there tax refunds, settlements, or inheritances that could change the picture?

Bring a rough list of what you own and what you owe on each item.

Questions about the process

Asking about the process in advance takes away a lot of the dread.

• What are the main steps from today until the case is finished?
• Will I have to go to court, and if so, what will that be like?
• What do I need to do between now and filing, and what should I avoid doing?
• What happens to the collection calls and letters once a case is filed?
• What will my responsibilities be after filing, such as keeping up with payments or sending documents?

If you are considering a repayment plan, ask what it would look like for your household, what happens if your income changes partway through, and what the plan means for your monthly budget. Your attorney can explain the general structure and then walk through how it would apply to you.

Questions about life afterward

People rarely ask about the aftermath, and then wonder about it for weeks. Put these on the list too.

• How will this show up on my credit, and for how long?
• What does rebuilding credit usually look like?
• Are there debts that bankruptcy typically does not touch?
• Will this affect my job, my housing, or a future loan application?
• Is there anything I should do now to put myself in a better position?

Questions about working with the firm

It is fair to ask about how the relationship will work. Ask what the attorney needs from you, how you will communicate, who you should call with a question, and what the next steps would be if you decide to move forward. The office offers a form to read and sign before a bankruptcy consultation, so ask whether you should fill it out beforehand.

You can also ask about cost. Call to ask about fees; the consultation itself is free, so the first meeting is the right time to get answers about fees and what is included. Seniors and veterans may qualify for discounted rates with proof.

The attorneys at Apple Street Law Office P.L.C. serve Hastings and Barry County, along with Kent, Kalamazoo, Berrien, Ionia, Eaton, Allegan, and Calhoun counties. If getting to the office at 121 W Apple St., Suite 101 is difficult, hospital, jail, and home visits are available if necessary, and evening and weekend appointments can be arranged.

This article is general information, not legal advice, and it does not create an attorney-client relationship. Your attorney will tell you how the process applies to your situation. To schedule a free consultation, call (269) 945-3512.

We are a debt relief agency. We help people file for bankruptcy under the bankruptcy code.