There is no cut-and-dry situation in which one form of bankruptcy is necessarily better than another. Of course, eligibility is an issue. Tennessee courts offer Chapter 7 to almost any debtor, but Chapter 13 requires some sort of income.

Beyond that, it is probably best to approach your situation based on individual analysis. Here is a brief discussion of two times when you may want to consider Chapter 13 above any other debt option.

One of the things that Chapter 13 can often do is get you your driver’s license back. If your license was suspended due to fees that you owe the Memphis courts, Chapter 7 would probably not do much to help you. Chapter 13, on the other hand, allows you to restructure these types of debts. As explained on FindLaw, you could spread out the amount you owe over a period of five years in most cases.

Home loans are another type of debt that Chapter 13 may help. Opposed to Chapter 7, Chapter 13 would allow people with income to restructure their home loans and potentially keep houses in which they hold equity. If you have paid a significant amount on your home, this could be of interest to you. Even if you were a renter, a repayment plan could help you focus on essential expense by living free of the burden of credit debt.

Chapter 7 usually requires more money up front in Memphis. Therefore, Chapter 13 could be a better option for you if you are short on cash and need to manage your debt quickly. However, this is not legal advice. Please think of it only as general information.