What is the Biggest Difference Between Chapter 7 and Chapter 13 Bankruptcy?

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One of the biggest differences between Chapter 7 and Chapter 13 bankruptcy is the protection provided for third parties myworldnews24. If you are behind on your mortgage payments, bankruptcy can stop foreclosure, giving you time to catch up. Chapter 13 can also protect your co-signers from creditor action. It can also assign debts to different payment percentages and creditor classes. Also, Chapter 13 allows you to file more than one bankruptcy case onlinewebworld24.

A chapter 13 bankruptcy plan can last three to five years. Most people choose five years. In 2017, nearly four-fifths of Chapter 13 debtors obtained a discharge of their debts. While Chapter 7 offers near-guaranteed debt relief, Chapter 13 also has benefits related to secured debt. In many cases, filing a chapter 13 bankruptcy will stop foreclosure proceedings and allow debtors to catch up on mortgage payments indvox.

Chapter 13 is typically used by debtors who have significant nonexempt assets. In Chapter 13 bankruptcy, a debtor will make a plan to repay their debts over three to five years. The debtor may have to sell assets to raise money for the creditors hqlinks.

Chapter 7 bankruptcy focuses on discharging unsecured debt while Chapter 13 focuses on catching up on secured debt. Chapter 13 bankruptcy protects non-exempt assets and allows you to keep your wages apninews5896.

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