Which Chapter should I file under?
Generally, the "replacement value" of your property will determine whether you will file a
Chapter 7 or Chapter 13. If you have property of high value that you do not want liquidated
then Chapter 7 may not be the right Chapter for you. There are other factors to consider,
however. For example, debts that are not dischargeable under Chapter 7 may be
dischargeable under Chapter 13. Also, priority debts owed to the IRS that are being garnished
from your wages can be paid over the life of a Chapter 13 plan and can be less oppressive
than a garnishment. Finally, if you already filed (and received a discharge in) a Chapter 7 less
than 8 years ago, you must file a Chapter 13. However, to qualify for a Chapter 13 you must
have both regular and disposable income and you cannot have debts that exceed certain
limits. Moreover, having income that exceeds certain amounts may dictate that you file a
Chapter 13 instead of a Chapter 7. You should consult with an attorney before filing a
bankruptcy petition to make sure you are making the best choice.