Chapter 7 vs. Chapter 13 Bankruptcy

When filing for bankruptcy, you must decide whether Chapter 7 or Chapter 13 is more appropriate for your unique situation. Some factors to consider include your income, your expenses, and whether or not you’re willing to give up some of your property to pay debts.

Chapter 7: Discharging Debts

When most people think of filing for bankruptcy, they think of Chapter 7. In a Chapter 7 bankruptcy case, many or all of your dischargeable debts will be cleared. However, the bankruptcy trustee will generally sell much of your nonexempt property to pay off creditors. For most cases, your home and car will be considered exempt and cannot be liquidated by the trustee.

In most cases, the following types of debts CANNOT be discharged through bankruptcy:

  • Child support
  • Back taxes
  • Student loans
  • Debts which you incurred through malicious or fraudulent acts

Chapter 13: Reorganizing Debts

In a Chapter 13 filing, your debts are not generally discharged, nor is your property sold. Instead, the bankruptcy trustee will work with you to create a repayment plan, in which you will pay back all or some of your debts over a three to five year period. In order to qualify for Chapter 13 bankruptcy, you must actually make enough money to afford the payments. You also may be denied Chapter 13 if your debt total is too high.

Considering Bankruptcy? Call (321) 320-6088.

If you’re feeling burdened by unmanageable debt, bankruptcy can be an effective way to get relief. At Buchalter Law Group, our Brevard County bankruptcy attorneys have more than 35 years of experience with both Chapter 7 and Chapter 13 filings. When you retain our firm, we will work tirelessly to secure the best possible results in your case.

Let our experienced attorneys guide you through the bankruptcy process. Call today for your free consultation.

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