The Difference Between Chapter 7 And 13

For those who are looking into filing for bankruptcy, they need to know that there are two types that they might consider. There is chapter seven and then there is chapter thirteen. Some people wonder what the difference is between the two. This is where they can learn about this. Many know that both of these help a person to get rid of their debt, but they both go about this in different ways.

The biggest thing that differs between the two is how a person goes to repay their debts. In Chapter 13, the person has to go to court and they are appointed a payment plan where they are to repay a part of their debt. However, in chapter 7, they might not have to repay some of the debt that they have. Many are just simply eliminated.

A person has to look at how long it will take to complete these as well. Those who go with Chapter 13 can expect the process to take an even longer amount of time. On average, this takes three to five years. For those who are filing Chapter 7, they find that theirs is done in only a few months. The average amount of time this takes is anywhere between four to six months. That is the other big difference between the two.

The last difference is the protection of assets. In Chapter 13, a person does not have to worry at all about their assets. They will not have them taken away. Some might even find that this will stop foreclosures or even repossessions. However, there are some who find that they can have some things taken during Chapter 7 bankruptcy. It just depends on what all is protected.

If a person is not sure which one they should go with, they might want to be sure that they get assistance from a legal expert. They can advise as to which one will be good for the person and what not. That is what they should go to do if they are looking at doing this. There are many who did not even know this much when they started looking into bankruptcy. Now, they can have a better understanding between the two of them. One might be better than the other for some, but the other might be better for others. This is why they need to be sure they get a look at which one is best for them.