Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy

While a Chapter 7 Bankruptcy and Chapter 13 Bankruptcy both offer benefits you may only qualify for one type. One chapter will help you save your home if your behind on payments, while the other will completely eliminate most unsecured debty.  Each chapter provides benifits which we at Bankruptcy Professionals will go over with you at the intial 100% free consultation.  Choosing between which bankruptcy best suits your situation will depend on your long term and short term goals.

Chapter 13 Bankruptcy Benefits

One of the primary benefits of filing a Chapter 13 Bankruptcy is that it can prevent foreclosure of a house or car repossession. A Chapter 13 Bankruptcy allows you to stop the collection efforts by both secured and unsecured creditors by creating a type of repayment plan. The length of a chapter 13 bankruptcy repayment plan ranges from 36 (3 years)  to 60 months (5 years) to pay back your creditors the outstanding delinquency. The bankruptcy plan allows the debtor to spread out payments to get caught up on the property over time and prevents the debtor from having to come up with all the money immediately. Along with the principle benefit of stopping a home foreclosure or the repossession of other types of secured collateral, like a car, a Chapter 13 Bankruptcy can also help eliminate most of your unsecured debt sometimes only paying back 1% of the outstanding balance. When you complete your Chapter 13 Bankruptcy repayment plan, you will be debt free and current on your house and car!

Another major benefit of filing a Chapter 13 Bankruptcy is the 100% protection of your valuable assets from seizure by your creditors. Although Chapter 7 Bankruptcy provides for some protection of your assets through state created “exemptions,” not all of your property may be completely protected from seizure.

Chapter 7 Bankruptcy Benefits

The primary benefit of filing a Chapter 7 Bankruptcy is the elimination of most or all your unsecured debt. The most common types of unsecured debt are credit cards, medical bills, payday loans, and utility bills. These types of debts are completely eliminated.  So once your chapter 7 bankruptcy case is discharged you are completely free of these types of debt.  However thier are limited amounts of exemptions on assets you may protect.

Another primary benefit of Chapter 7 Bankruptcy is the length of time it takes to be discharged. In most cases a chapter 7 bankruptcy case will be discharged in 3 to 6 months.  A Chapter 13 Bankruptcy on the other hand is a repayment plan that lasts 36 to 60 months.

Which is Right for You – Chapter 7 or Chapter 13 Bankruptcy?  Call 888-970-1090 to find out

While the end results of both types of Bankruptcy are similar, some the benefits from each type of Bankruptcy can be very different. In order to determine which type of Bankruptcy you should file or which type of bankruptcy best suits your needs and long term goals you need to seek advice from the Bankruptcy Professionals at 888-970-1090.

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