When making the decision to file bankruptcy, it is strongly recommended that you consult with an attorney to determine the best course of action for you. There are two primary types of bankruptcy, and getting counsel on the most appropriate one to file can make a difficult process easier to understand.

Chapter 7 is the most common type of bankruptcy, where assets are turned over to a trustee. The trustee then liquidates these assets and turns the funds from that liquidation into payments to creditors. After this, no debts are owed, with some limited exceptions like purchases made by contract, some student loans, recent high purchases, child support, or alimony. This is a good choice for you if you feel like there is no chance of repayment. If you are feeling buried by the bills and do not see a way out, or you have already attempted to eradicate the issue with a payment plan and failed, then consider how Chapter 7 can allow you to chart a new course. For many people, Chapter 7 bankruptcy gives them the opportunity to start fresh.

In Chapter 13, though, debts are reorganized into a repayment plan. This is not the right choice for you if you have already been struggling to make payments or if there is no foreseeable way that you could keep up with payments. If you have already filed Chapter 7 recently, then this may be your only option for filing bankruptcy in the short term.

Consult with your bankruptcy attorney to determine what will help you get on top of the debt and move on with your life. Life with the burden of high bills that you cannot get on top of is very difficult. Investigate your options and move forward with bankruptcy if you determine this is right for you. Jayson Lutzky is a bankruptcy attorney who helps clients in New York get a fresh start. Mr. Lutzky offers free in-office consultations. Call 718-514-6619 to set up an appointment and visit www.MyNewYorkCityLawyer.com.