There are many differences between Chapter 7 and Chapter 13 bankruptcy. Chapter 7 is much less expensive than Chapter 13. Chapter 7 is much shorter in duration than Chapter 13. But most importantly, these two different types of bankruptcy were designed to deal with different types of debt problems.
Chapter 7 bankruptcy allows a person to wipe out debt and obtain a fresh start in just a few months. Chapter 7 bankruptcy will wipe out unsecured debts such as credit cards, medical bills and payday loans.
Chapter 7 will also allow you to surrender a home or vehicle or other financed purchase and walk away without owing another penny. The entire Chapter 7 process usually takes about 4 months from the time you file until the end of your case.
Chapter 13 bankruptcy is a repayment plan that lasts from 3 to 5 years. Chapter 13 is a form of debt consolidation where you pay back secured debts, usually in full, and pay cents on the dollar on your unsecured debts. Your bankruptcy lawyer creates a Chapter 13 plan which requires you to make a monthly payment to the Chapter 13 Trustee who then pays your different creditors.
A great benefit of Chapter 13 is that it will stop the foreclosure of your home or the repossession of your car and allow you to cure any delinquency and catch up your payments over the length of the Chapter 13 plan.
If you’re struggling with debt problems and would like to know more about the different types of bankruptcy and which would be best for your specific situation, contact me today to schedule a FREE initial consultation. Just fill out the Contact Dan form on the far right side of the page and click the Submit button and I’ll get back with you as quickly as I can. I would count it a privilege to be able to visit with you in a relaxed and confidential environment where I’ll answer all of your questions in plain English and give you the straight scoop on the pros and cons of bankruptcy as related to your specific situation.
{ 2 comments… read them below or add one }
If I do a Chapter 7 will I loose my house. If i did a chapter 7 it would be a lot cheaper correct?
I would rather do a chapter 13 but the cost is a factor in it.
Lendora,
I would need to talk with you personally and know more about your specific situation before I could give you legal advice regarding bankruptcy. Feel free to give me a call at 918-615-8260 at your convenience so that we can discuss your situation.
Dan Nunley