What is the difference between chapter 7 and Chapter 13 bankruptcy? 7 Answers as of December 01, 2010

What is the difference between chapter 7 and chapter 13 bankruptcy? I am thinking of filing. How do I find a good attorney?

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Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
Chapter 7 is called a liquidation bankruptcy and may be used if you have little or no equity in non-exempt property and your income is modest enough to qualify for the "means test." Generally it requires no repayment of your dischargeable debts. Chapter 13 is more of a reorganization bankruptcy that requires you to pay back some of your debts, depending on your income and the equity in your property. You may check with your local Bar Association for possible referral of bankruptcy attorneys.
Answer Applies to: Illinois
Replied: 12/1/2010
Greifendorff Law Offices, PC
Greifendorff Law Offices, PC | Christine Wilton
Chapter 7 is a liquidation bankruptcy where you pay nothing to your creditors. Chapter 13 is more of a debt restructuring case where you make payments over time to your creditors. This is a general distinction between to two chapters.
Answer Applies to: California
Replied: 11/30/2010
Maclean Chung Law Firm
Maclean Chung Law Firm | David H. Chung
A chapter 7 bankruptcy entails liquidation of assets and debts. A chapter 13 bankruptcy requires a 3 or 5 year payment plan. Most bankruptcies are chapter 7, but in some situations a chapter 13 is more preferable. The biggest difference is that a chapter 13 requires you to have a steady source of income.
Answer Applies to: California
Replied: 11/30/2010
The Shakoori Law Group
The Shakoori Law Group | Rachelle Shakoori
Chapter 13 is repayment plan If you have too much assets or too high of income, then you do not qualify for chapter 7 and chapter 13 may be more appropriate. Also in chapter 13 you can get an opportunity to catch up on arrearages on a secured debt like your home.
Answer Applies to: California
Replied: 11/29/2010
Ursula G. Barrios Law
Ursula G. Barrios Law | Guillermo Machado
Chapter 7 helps you eliminate debt if you qualify based on income standards.

Chapter 13 helps you restructure debt,strip 2nd and3rd mortgages and cure any arrears on your house.

Both provide immediate relief from debt.

If you would like to discuss more, we offer a free consultation. Please call Barrios and Machadotoll or email me.
Answer Applies to: California
Replied: 11/29/2010
    Royzman Law Firm
    Royzman Law Firm | Natella Royzman
    Chapter 7 bankruptcy is a liquidation proceeding in which all of a debtor's nonexempt assets that have significant value (if any) are distributed to creditors. It is a fairly quick process at the end of which the debtor receives a discharge of most or all of his or her debts.

    In Chapter 13, debtors pay some or all of their debts using their disposable income according to a plan approved by the court. Payments are made over a period of either 3 or 5 years, at the end of which a debtor receives a discharge. Debtors in Chapter 13 are allowed to keep and use all of their property -whether or not it is exempt. Chapter 13 can stop a car repossession or home foreclosure and give you time to cure the default.

    Chapter 7 and Chapter 13 each have different eligibility requirements. Also, there are pros and cons to each option, so the determination of which is best for you requires an analysis of your particular financial situation and needs.

    Feel free to contact me to discuss whether bankruptcy is the right option for you. Generally, in looking for a good attorney I would suggest that you contact someone who focuses his or her practice on bankruptcy. Be careful - there are agencies and attorneys out there who offer bankruptcy assistance at a very low price, but do not provide competent and effective service.
    Answer Applies to: California
    Replied: 11/29/2010
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    There are many differences. The primary difference is that in a Chapter 7 case you do not make any payments, but you give up any non-exempt assets you may have (determining which assets are exempt requires an extensive analysis by an attorney). Chapter 13 allows you to keep all your assets, but you have to do a repayment plan based on your disposable income.
    Answer Applies to: California
    Replied: 11/29/2010
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