Key Differences in Chapter 7 and 13
CHAPTER 7 BANKRUPTCY - LIQUIDATION
- Often referred to as a "Straight Bankruptcy"
- Allows you to eliminate your Unsecured Debts
- Required to qualify under Means Testing
- Allowed to Keep your Home provided you are current on payments
- Allowed to Keep your Car provided you are current on payments
- Receive a Discharge in as little as 4-6 months
CHAPTER 13 BANKRUPTCY - WAGE EARNER
- Often referred to as a "Wage Earner Bankruptcy"
- Allows you to catch up on past due Mortgage Payments or Rental Payments over the course of 3-5 years *
- Allows you to lower your car payments *
- Allows you to pay back a fraction of your unsecured debts interest free *