What is the difference between a Chapter 7 and Chapter 13 bankruptcies?
The decision on whether to file a Chapter 7 or Chapter 13 bankruptcy should be based on your circumstance and the kind of debts that you have incurred. A Chapter 7 bankruptcy is commonly filed by individuals who are left with very little after paying their basic monthly living expenses. Under Chapter 7 bankruptcy, most debts are discharged with your bankruptcy. A Chapter 13 bankruptcy is a debt repayment plan that allows the filer to keep the property that would otherwise be lost due to the debt. The repayment plan includes a lower or no interest rate which is approved by the bankruptcy court.
Other Chapter 7 and Chapter 13 FAQs
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Can I change from one chapter to another?
Yes. In general, you may convert your filing to one type of bankruptcy to another. Proper procedure and requirements must still be fulfilled when converting your … -
Will all of my debts be discharged in a Chapter 7 bankruptcy?
No. It depends upon the type of debt. Though bankruptcy filing does discharge most debts, there are certain debts which will not be removed. These debts … more -
What is the difference between a secured debt and an unsecured debt?
In a Chapter 7 bankruptcy, a court may discharge unsecured debts but not secured debts. Secured debts are money owed to a creditor that is protected with … more -
Will I be required to sell my assets?
Yes. A lot of your property which is deemed a necessity will not be released, but filing bankruptcy (Chapter 7) will often require you to give up certain types of … more -
If I file for Chapter 7 bankruptcy can I keep some of my property?
In general, Chapter 7 bankruptcy gives up all of your non-exempt property. Exempt property is property defined by state law which is not discharged from … more -
What are the basic requirements for filing a Chapter 7 petition for bankruptcy?
Each type of bankruptcy has its own requirements for filing. An individual who is filing for Chapter 7 bankruptcy is required to meet the “means test” to … more -
What are the basic requirements for filing a Chapter 13 petition for bankruptcy?
Each type of bankruptcy has its own requirements for filing. An individual who is filing Chapter 13 bankruptcy has two principal requirements: (1) The debtor … more
Bankruptcy Sub-categories
