What is the difference between a Chapter 7 and a Chapter 13 bankruptcy?
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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Q:
Can you declare bankruptcy on a Small Business Administration (SBA) loan?
A: While the common perception is that you cannot discharge government loans in bankruptcy, in reality, many such loans can be discharged in bankruptcy. The Small … More -
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 -
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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
