What Is The Difference Between Chapter 7 And Chapter 13 Bankruptcy?

Clients overwhelmed with debt have different options when filing for bankruptcy. For personal bankruptcy, Chapter 7 bankruptcy and Chapter 13 bankruptcy are the two major types of filings. Understanding how these bankruptcies differ will help you understand the most effective way to overcome your debt.

Chapter 7 Bankruptcy Can Be A Fresh Start

Chapter 7 bankruptcy allows a person to remove certain debts and begin again. Clients are also required to meet the criteria of a "means test," which evaluate a debtor's income and checks for previous bankruptcy filings.

Chapter 13 Bankruptcy Lets You Keep Your Assets

A Chapter 13 bankruptcy allows a debtor to reorganize their debt and create a repayment plan. This kind of bankruptcy is for people who do not qualify for Chapter 7. Chapter 13 filers must pay back their debt over a three to five-year period depending on their income level. To qualify for a Chapter 13 bankruptcy, debtors must meet a few criteria, including not filing a recent previous bankruptcy and be under certain debt limits.

No matter your bankruptcy, there are a few types of debt such as student loans or child support payments, which you cannot eject except under extraordinary circumstances. At the Michael Koch, Esq. Lockhart, Britton & Koch, you receive personal attention from a knowledgeable attorney. My La Mesa, California, office can review your case for no charge and determine which type of filing would be the most beneficial for you.

You Deserve A Fresh Start, Talk To A Lawyer Now

Speaking to an attorney can guide you through the debt relief process and make sure you are creating a reasonable bankruptcy agreement. For a free consultation of your case, call 619-299-2199 or send an email.

I am a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.