How do you know if bankruptcy is the right solution for you? Or what type of debt relief is best? Chapter 7? Chapter 13? Generally speaking, if your monthly income is less than your monthly expenses, you may be able to file for Chapter 7 bankruptcy. Chapter 13 is a solution for an individual with a regular source of income to help reorganize debts.

In most cases, Chapter 7 bankruptcies will be completed in about five months. Chapter 13 payment reorganization plans last three to five years.

If you're considering bankruptcy, it's likely your credit rating is already damaged. A bankruptcy will likely stay on your credit report for ten years. However, with a fresh financial start, you can begin repair and rebuild your credit rating. Many people obtain credit quickly and my clients have even obtained mortgages within a few years after their bankruptcy is discharged.

You may be able to file a Chapter 13 payment reorganization plan at any time. A Chapter 7 bankruptcy can be filed again eight years after a previous Chapter 7 bankruptcy was discharged.