If someone needs to file bankruptcy, then Chapter 7 is typically the chapter that we recommend that they file because it is the quickest, easiest, cheapest, and it usually does the most for the client. Chapter 7 bankruptcy is available to debtors who have not filed for protection under that Chapter in over 8 years, and who pass Congress’s 2005 litigation better known as the “Means Test.”
Chapter 13 is usually the right chapter to file if you are behind on a car or home that you want to keep, make too much money to file Chapter 7, or have an enormous income tax obligation and are being charged a lot of interest by the IRS.
Debt settlement is very rarely the best solution. Bankruptcy is almost always the best course of action if you have an insurmountable amount of unsecured debt. However, every situation is different and must be evaluated on a case by case basis.