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Which type of bankruptcy makes the most sense for me? Chapter 7 or Chapter 13?

  Did you know that there are several different forms of bankruptcy that may be available to you?  The United States Bankruptcy Code contains several “chapters” that set out the rules for the different types of bankruptcy.  One or more of these chapters may describe relief that fits your circumstances.

  The point here is that bankruptcy is not a “one size fits all” type of process.  Every day, the attorneys of Clark and Washington meet with anxious clients who have been dealing with the stress arising from debt and an unbalanced budget.  We often hear statements like “I did not know this is how bankruptcy works” from our clients.  Sometimes, we find that our clients made bad decisions about which debts to pay or about transferring money from retirement accounts.

  If you are facing financial problems, the time to speak with our office is now.  Don’t wait until you are facing a lawsuit, wage garnishment, repossession or foreclosure.  Clark and Washington never charges a consultation fee and we are happy to set out plan of action that includes both bankruptcy and non-bankruptcy options.

  Obviously, ever case is different, but here are some general points that differentiate the most common forms of bankruptcy:

Chapter 7

  • may eliminate unsecured credit card debt
  • may eliminate medical debt not covered by insurance
  • may allow you to walk away from a vehicle lease without financial penalty
  • may allow you to surrender a vehicle you are purchasing, without penalty
  • may allow you to walk away from a mortgage you cannot afford, without penalty
  • may eliminate old tax debt in some situations

Chapter 13

  • can stop a foreclosure
  • can reinstate a mortgage and permit you to pay missed payments over time
  • can stop a repossession
  • can permit you to modify the terms of installment notes for purchase of cars, furniture, jewelry or other secured items
  • can cancel a lease
  • can stop a tax levy and may reduce your outstanding tax debt
  • can stop a pending wage garnishment or bank account levy

  If you are facing any of these financial issues, or even if you are simply concerned about financial problems that may arise in the months to come, please call our office at 423-634-1910 and speak without charge to a caring, knowledgeable Clark and Washington bankruptcy lawyer.


Clark & Washington, Attorneys, 6025 Lee Hwy., Suite 101, Chattanooga, TN 37421 Phone: 423-634-1910