What is the Difference between Chapter 7 and Chapter 13 Bankruptcy?
Deciding if you should file bankruptcy is a momentous decision in itself, not to mention determining whether to file Chapter 7 or Chapter 13 once you have decided to proceed with bankruptcy. Filing a Chapter 7 or a Chapter 13 will depend largely on your situation and what kind of debt you are facing.
Chapter 7 of the Federal Bankruptcy Code, commonly referred to as liquidation or a straight bankruptcy, accounts for nearly 65 percent of individual bankruptcy filings. It involves converting assets into money in order to repay your creditors, and ordinarily most, if not all, debts are discharged with your bankruptcy.
Chapter 13 Bankruptcy permits debtors to keep their property while allowing for a new repayment plan (approved by the court) to pay creditors with lower or no interest to the debtor. Upon completion of the bankruptcy, the debtor could be fully discharged if he or she has met the appropriate requirements.
If you think Chapter 7 or Chapter 13 might be helpful for you and your situation, please call 1-800-3NO-DEBT to discuss your situation further with a knowledgeable Bankruptcy attorney near you.
Also feel free to browse through BankruptcyHome to learn more about Chapter 7 and Chapter 13 Bankruptcy or to fill out our free case evaluation and have an experienced bankruptcy attorney evaluate your case.
Please fill out our free evaluation form to determine if bankruptcy is right for you.
