What is the difference between Chapter 7 and Chapter 13 bankruptcy?
There are numerous differences between the Chapter 7 and Chapter 13 bankruptcy. They are the following:
While the Chapter 7 lasts about 3 ½ months, Chapter 13 bankruptcy lasts for 3-5 months.
Chapter 13 has numerous complex advantages over the Chapter 7 bankruptcy. This is noticeable through the type of exemptions that are granted through the bankruptcy cases. It has been seen, that the chapter 13 bankruptcy case offers a number of more exemptions than the chapter 7 bankruptcy case. This makes it more popular among the two.
In chapter 7 bankruptcy cases, the court would order you to sell your property while in Chapter 13 bankruptcy case the court would order you to keep your property with you.
Through Chapter 13 Bankruptcy case you may evade off certain types of debts that cannot be acquitted by a Chapter 7.
Since in Chapter 7 there is liquidation of all assets that are not excused, it is called straight bankruptcy.
You may get a release from your debts through Chapter 7. But this happens only once during every 6 months.
Chapter 13 is also known as consolidation bankruptcy. In this case, the petitioner consents to a payment plan. This is to be overseen by the assigned trustee
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