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Which bankruptcy is the right choice for me?

If you or a loved one are considering filing bankruptcy, it is important to know your options. Here are some of the key differences between Chapter 7 Bankruptcies and Chapter 13 Bankruptcies.

For more information and a free consultation, call us at (615) 384-7750and meet our bankruptcy attorney, Steven Wilmoth, below.


  • Chapter 7 bankruptcies are designed to wipe out all general unsecured debts such as credit cards and medical bills.

  • To file for Chapter 7 bankruptcies, you must have little to no disposable income.

  • Generally, it requires no repayment of dis-chargeable debts.

  • Does not allow lien-stripping from real property.

  • Does not allow reduction of principal balance on secured debts.

  • On average, it takes 3 to 6 months before receiving a discharge.

  • Creditors cannot contact you while the automatic stay is in effect or after debts have been discharged.

  • It will stay on your credit record for 10 years.


  • Chapter 13 Bankruptcies are reorganization bankruptcies designed for debtors with regular income who can pay at least a portion of their debts through installments in a repayment plan.

  • You will be able to keep your property, including non-exempt assets. In exchange, you will pay back all or a portion of the debt through a repayment plan. 

  • You will make monthly payments to the bankruptcy trustee who then distributes it to the creditors. You will not have direct contact with the creditors during the protection period of several years.

  • Allows lien-stripping from real property.

  • Allows reduction of principal loan balance on secured debts.

  • Can allow for catching up on missed mortgage payments instead of selling real property.

  • Allows reduction of principal loan balance on secured debts.

  • Typically takes several years to complete bankruptcy. 

  • Co-signers may be protected.

  • It will stay on your credit record for 7 years.