Bankruptcy Chapter 7 VS Bankruptcy Chapter 13

Bankruptcy Chapter 7 VS Bankruptcy Chapter 13

Bankruptcy Chapter 7 VS Bankruptcy Chapter 13

Helping troubled homeowners is our mission.

  Chapter 7 Chapter 13
How does it work? Most of your debt disappears, paid off in cash, investments, home equity and non-exempt property The debt stays and is paid off on a plan within 3-5 years with remaining debt getting potentially discharged
Who can file? Individuals and business entities Individuals only
When to file? You don’t have much property and can’t cover your basic living expenses Sufficient income and assets to protect
Eligibility To be eligible you need to pass the chapter 7 means test based on income and expenses To be eligible you cannot have more than a given amount of unsecured or secured debt at the time of filling
Negatives This stays on your credit report for 10 years and does not provide a way to avoid foreclosure or repossession This stays on your credit report for 7 years and you may have to pay back a portion of general unsecured debts