If you’re a consumer who is considering bankruptcy then it is important to know your options. Chapter 7 and Chapter 13 bankruptcy are likely the two types that are most relevant to you so here is a breakdown of what they are about and who can file them.
• Chapter 7 bankruptcy is for those who don’t have much in terms of real property, are making little or no money, and haven’t the means to pay for life’s basic necessities.
• Chapter 13 bankruptcy is for those who have substantial equity in their home and have enough income to pay for life’s expenses but not to pay for outstanding debts.
• Chapter 7 bankruptcy results in the discharge of most unsecured debts in the time of only a few months.
• Chapter 13 bankruptcy allows you to keep your assets while making payments in a window of about three to five years.
• Chapter 7 bankruptcy is an option for those who have passed the “means test” which determines an applicant’s eligibility. A pre-bankruptcy credit counseling session is also required for those who wish to file this type of bankruptcy.
• Chapter 13 bankruptcy is for those who are receiving enough income and have unsecured and secured debts are under a certain amount.
Learn More About Chapter 7 and Chapter 13 Bankruptcies
We have merely scratched the surface regarding the aspects of Chapter 7 bankruptcy and Chapter 13 bankruptcy. However, you should have a basic understanding of where you stand in terms of eligibility for each. Talk to a licensed bankruptcy attorney today to have all your Chapter 7 and Chapter 13 questions answered by a professional.
