Chapter 7 vs. Chapter 13 Bankruptcy: Which One Fits Your Situation?
Financial hardship can happen fast—illness, injury, job loss, or business challenges. If debt has become unmanageable, bankruptcy may offer a real path forward.
At De Armas & Arriete, PLLC, we help individuals and businesses file under Chapter 7, Chapter 13, and Chapter 11.
Chapter 7: Consumer liquidation bankruptcy
Chapter 7 is one of the most common options for consumers. In general terms, it may involve selling nonessential assets to pay creditors, with eligible remaining debt discharged.
This can be a fit for people who can’t keep up with monthly payments due to essential living expenses.
Chapter 13: Consumer debt reorganization
Chapter 13 allows many people to consolidate debt into a 3–5 year payment plan. If you complete the plan, remaining eligible debt may be discharged.
This approach is often used by people who want to pursue relief without liquidating
certain assets.
Chapter 11: Business reorganization (and Subchapter V)
For businesses, Chapter 11 can provide a structured way to reorganize and negotiate with creditors. Some small businesses may qualify for Subchapter V.
The right move starts with a conversation
Bankruptcy is a legal tool—but it’s also a personal decision. We’ll take time to understand your story, explain your options in plain language, and guide you through each step.
Schedule a free consultation: (786) 454-9838.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
