What Is The Difference Between A Chapter 7 And Chapter 13 Bankruptcies?

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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

Q: What Are The Basic Requirements For Filing A Chapter 7 Petition For Bankruptcy?
A: 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
Q: What Are The Basic Requirements For Filing A Chapter 13 Petition For Bankruptcy?
A: 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
Q: Can I Change From One Chapter To Another?
A: 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 …
Q: Will All Of My Debts Be Discharged In A Chapter 7 Bankruptcy?
A: 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
Q: If I File For Chapter 7 Bankruptcy Can I Keep Some Of My Property?
A: 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
Q: Will I Be Required To Sell My Assets?
A: 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
Q: What Is The Difference Between A Secured Debt And An Unsecured Debt?
A: 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