What is the difference between a Chapter 7 and a Chapter 13 Bankruptcy?
I get calls all day with this exact question. Although they are both bankruptcies, clients who file have different goals and rationale for filing:
Chapter 7 is a complete liquidation. It is designed for individuals and certain companies who do not have the ability to pay their debts. In chapter 7 bankruptcy, the trustee will liquidate any non-exempt property in order to distribute the proceeds to creditors according to the Bankruptcy Code. Each state allows the debtor to exempt, or protect, certain assets, which the debtor can keep after bankruptcy. In reality, most debtors do not have significant assets worth liquidating. But to be sure, contact an attorney at the Chicago Bankruptcy Network to review your assets and exemptions available to you.
Chapter 13 enables individuals with steady income to repay their debts over time, with court protection from their creditors. Chapter 13 Bankruptcy can be used to stop foreclosure of your home, or it may be used to stop your vehicle from being repossessed. Often, debtors are able to repay their creditors at a discounted rate, depending on their individual situations. Call a lawyer from the Chicago Bankruptcy Network today to see if Chapter 13 is right for you.
Leeders & Associates
member of http://www.chicagobankruptcynetwork.com