Chapter 7 vs. Chapter 13
What is the Difference between Chapter 7 and Chapter 13?
Both
Chapter 7 and
Chapter 13 bankruptcy are types of consumer bankruptcies that are filed by people who are struggling with their debt and finding it difficult to repay their creditors. However, each type of bankruptcy is uniquely different.
The main difference between Chapter 7 and Chapter 13 is the process of liquidation. In a Chapter 7 bankruptcy, most of the debtors assets are liquidated. This means that their homes, cars, land and other valuables may be sold. Proceeds from the sales would then be turned over to their creditors or lenders. The law does allow you to keep some assets in a Chapter 7.
Another key difference between
Chapter 7 and
Chapter 13 is how debts are handled. Once people successfully file for
Chapter 7, their debts are discharged. Essentially, this means that their debts are eliminated and they are no longer responsible for repaying their creditors. However, when people file for Chapter 13, they create repayment plans so that they can pay back some or all of their debts over the course of 3 - 5 years. Instead of having their debts eliminated, people are responsible for making a single monthly payment which is applied to the total balance of the debt they owe to their various creditors or lenders.
Which Type of Bankruptcy is Right for You?
This is a question many people ask themselves when they are thinking of filing for bankruptcy. Instead of filing your Chapter 7 or Chapter 13 bankruptcy petition without being fully informed, we advise that you consult with a
knowledgeable Florida bankruptcy lawyer like Attorney Christopher Forrest.
If you are thinking about filing for Chapter 7 or Chapter 13 Bankruptcy in the State of Florida,
contact The Forrest Law Firm today! We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
Florida bankruptcy attorney
Christopher Forrest represents clients in Sarasota County, Manatee County, Pinellas County, Hillsborough County, Venice, North Port, Sarasota, Bradenton, Tampa and St. Petersburg, and surrounding areas.
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