What Is The Difference Between Chapter 7 And Chapter 13?

For people looking for relief from overwhelming personal debt, there are two types of bankruptcy that can help: Chapter 7 and Chapter 13. Both offer individuals and couples the opportunity to discharge unsecured debts and get a fresh start. While the two different chapters take different approaches, they also share certain characteristics.

Discussing your circumstances in depth is the best way to determine which bankruptcy chapter will be the most beneficial for you.

Here is an explanation of some of the benefits the different personal bankruptcy chapters can provide for you:

  • Chapter 7 bankruptcy — Chapter 7 is also known as a liquidation bankruptcy. The entire process moves fairly quickly. Your debt may be discharged in about 6 months. In Chapter 7 your unsecured debts such as credit card bills, medical bills and personal loans are discharged. There are exemptions that will allow you to keep most of your property.
  • Chapter 13 bankruptcy — Chapter 13 is also known as a reorganization bankruptcy due to the fact that your debts are reorganized into a three- to five-year repayment plan. The repayment plan is based on your ability to pay. This is a great way to get current on your mortgage and fight foreclosure. Once the repayment plan is complete, left over debts will be discharged.

Focused Exclusively On Bankruptcy

At Christopher Kerney, Attorney at Law, we can help you understand the difference between Chapter 7 and Chapter 13 and which will be the best fit to help you get back on your feet. We take the time to get to know you and your situation. That is the only way to make a proper determination of what is the best approach to getting out from under overwhelming debt.

Chapter 7 And Chapter 13 Bankruptcy Attorney Serving Gallatin And The Surrounding Areas

When you need help understanding what debt relief options are available and how they can help you, we will be happy to take the time to walk you through them. To schedule a free initial consultation with our lawyer, call 615-206-3004 or contact us online.