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May 8 2009, 3:16 PM EDT (current) rexkaufman6721 351 words added
May 8 2009, 3:15 PM EDT rexkaufman6721

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Chapter 7 Discharge vs Chapter 13 Bankruptcy

If you are over your head in card debt and missing payments, bankruptcy might be the right option for you. There are several types you can file for the main ones are Chapter 7, chapter eleven and chapter thirteen. If you are an individual ( not a major company ) then you going to want to look into Chapter 7 or chapter 13.

Chapter 7

Chapter 7 is the 1st option that most people look at.

Under chapter 7 bankruptcy you must take a means test, that will add your gross revenue and assets and taking your liabilities and expenses in the last six months. If you meet the wants you can then file for chapter 7, if not you'll will have little negative effect on your receive a Chapter 7 discharge you debts are wiped out by the court except:

-debts that automatically survive bankruptcy-Child support, tax obligations and student loans.

-debts the court has announced non discharged because of the creditors objection-debts incurred by your crime or malevolent acts.

Chapter 13

With chapter thirteen bankruptcy you won't be wiping away your obligations, you will be creating a plan to pay them back, presumably at a lower interest rate and over a longer period of time.

You will receive a certificate at the completion of your counseling sessions. and state tax returns for the previous 4 years.

Usually most people will try to file on chapter 7 so they can get their obligations discharged it also takes less time than chapter 13.

The main problem with chapter 7 is the laws are much stricter now and with out aid from a bankruptcy lawyer, it is going to be unsecured loans can be licensed. Chapter thirteen is way easier to get authorized for.

Finally with Chapter 7 you will loose most your assets to the court to deal with your creditors, with chapter 13 you've got more control and can keep more assets. This is because chapter 13 is a repayment plan over 3 to 5 years, instead of just a clean slate.
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