What is the difference in chapter 7 and 13? Why attorney’s adds service fees? 9 Answers as of August 08, 2017

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
In ch13 you have a plan, the plan requires you to make payment. Are you asking why lawyers charge fees? You need to think about that.
Answer Applies to: California
Replied: 8/8/2017
Stephens Gourley & Bywater | David A. Stephens
A chapter 7 is filed and completed in about 4 months if there are no objections. Generally no payment are needed. In a chapter 13 the debtor makes monthly payments to the trustee for 36 - 60 months. You get a broader discharge from chapter 13.
Answer Applies to: Nevada
Replied: 8/7/2017
A Fresh Start
A Fresh Start | Dorothy G Bunce
Chapter 7 is a liquidation in which you turn over any assets you own that are not protected in exchange for eliminating your debts. These assets get sold and the proceeds are used to pay some of your debts. A Chapter 13 is a payment plan that lasts from 3 ? 5 years. During that time, your attorney is providing legal services to you on an ongoing basis to pay for the substantial amount of work that is being performed to administer your case. Unless you pre-pay the entire legal fee of several thousands of dollars in advance, your legal fees are taken out of the monthly payments made.
Answer Applies to: Nevada
Replied: 8/7/2017
Ronald K. Nims LLC | Ronald K. Nims
Chapter 7 eliminates your debts without payments to your creditors. Chapter 13 eliminates some debts and allows you to keep your house from being foreclosed.
Answer Applies to: Ohio
Replied: 8/7/2017
GARCIA & GONZALES, P.C. | Richard N. Gonzales
A world of difference. Meet with an experienced BK attorney.
Answer Applies to: Colorado
Replied: 8/7/2017
    Ferguson & Ferguson
    Ferguson & Ferguson | Randy W. Ferguson
    There should be ?no service fees in 7 or 13.
    Answer Applies to: Alabama
    Replied: 8/6/2017
    Patrick W. Currin, Attorney at Law | Patrick Currin
    7 is a speedy liquidation, 13 a reorganization that needs a court approved plan and takes years to execute. Your personal situation will determine whether either is a benefit to you.
    Answer Applies to: California
    Replied: 8/6/2017
    Eranthe Law Firm
    Eranthe Law Firm | Cate Eranthe
    In a nutshell: Chapter 7 is a liquidation. If there are nonexempt assets they are sold and distributed to the creditors. It usually takes 4 to 6 months from date of filing to discharge. Chapter 13 is a payment plan of 3 to 5 years. Nonexempt assets can be kept if they are paid for in the plan. There are debt limits. There are other differences such as what is dischargeable and what must be paid for in the plan. If you are considering bankruptcy it is best to speak with a knowledgeable local bankruptcy attorney. There is way too much involved to answer specific questions online. Attorneys charge fees. I'm not sure what you mean by service fees. Fees for services? That is normal. There is a filing fee paid to the court and attorney fees to the attorney for their work. A chapter 13 usually costs more than a chapter 7 but it depends on the facts of each case. Many times a chapter 13 costs more than the initial retainer and those fees can be collected pursuant to court ordered payments from the plan. If you have questions of your attorney, you should speak with them. No one here knows what happened in your case or what work your attorney did for you.
    Answer Applies to: California
    Replied: 8/6/2017
    Law Office of Stuart M. Nachbar, P.C.
    Law Office of Stuart M. Nachbar, P.C. | Stuart M. Nachbar
    Lots of differences. Different filing fees, different discharges, one has a repayment plan one does not. Talk to your local professional to see which is more appropriate for you. Also there are some good resources on the bankruptcy courts website which you should look at to educate yourself before speaking with counsel.
    Answer Applies to: New Jersey
    Replied: 8/6/2017
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