Chapter 7 Discharge Bankruptcy

Chapter 7 Discharge vs Chapter 13 Bankruptcy

If you're over your head in card debt and missing payments, bankruptcy may be the right option for you. There are a few types you can file for the main ones are Chapter 7, chapter 11 and chapter 13.

Chapter 7

Chapter 7 is the 1st option that most people look at. It used to be one of the best bankruptcies to get authorized for, though now under the new bankruptcy laws, it can be a bit more difficult.

Under chapter 7 bankruptcy you have to a means test, that will add your gross revenue and assets and deducting your liabilities and costs the last six months. If you meet the requirements you can then file for chapter 7, if not you'll will have to look into chapter 13.

If your receive a Chapter 7 discharge you debts are wiped out by the court except:

-debts that immediately survive bankruptcy-Child support, tax liabilities 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 will not be wiping away your debts, instead you will be devising be inventing plans to pay them back, presumably at a lower IR and over a longer time of time.

Before you can file you must take a credit analysis class. You will receive a certificate at the completion of your analysis sessions.

A bankruptcy lawyer can really help you with both chapter 7 and 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 much harder to be approved.

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