Differences Between Chapter 7 and Chapter 13 Bankruptcy
The most common types of individual bankruptcy are Chapter 7 and Chapter 13 Bankruptcy. The info-graphic below gives an overview of the differences between Chapter 7 and Chapter 13 bankruptcy.
Chapter 7 Bankruptcy
Chapter 7 is known as “straight” bankruptcy or “liquidation.” It is the most typical bankruptcy for individuals. It involves the liquidation of any non-exempt assets to be used to pay creditors. The remaining debt that is not paid by the liquidation is discharged, or forgiven. Individuals, corporations, and partnerships are eligible for Chapter 7 bankruptcy.
Chapter 13 Bankruptcy
Chapter 13 provides a way for individuals with a regular source of income to pay off their debts over a period of time under the supervision of the courts and an appointed trustee. The debtor can keep their assets in Chapter 13. Some of the debt may be discharged (based on the individuals’ income) and the rest is repaid over 3 to 5 years in a debt repayment plan.
Call for a Free Consultation
The Law Office of Erin Bradley McAleer assists hard working individuals and families in getting the fresh financial start they need. Our consultations are always free and informative, and we take the time to answer your questions and discuss whether bankruptcy is right for you. Should you decide to file bankruptcy with our office you may be surprised how inexpensive our services are. In any case, we will be more than happy to discuss and arrange with you a payment plan that is affordable and fits your budget.
Call us today at (360) 334-6277 to schedule a free, confidential consultation.
The Law Office of Erin Bradley McAleer represents clients throughout Southwest Washington State, including in Clark County, Cowlitz County, and Skamania County and Vancouver, Battle Ground, Camas, La Center, Ridgefield, Washougal, Woodland, Yacolt, Castle Rock, Kalama, Kelso, Longview, North Bonneville, and Stevenson. Attorney Erin Bradley McAleer focuses on the areas of Criminal Defense, Bankruptcy, Traffic Infractions, Landlord Tenant, Personal Injury, Firearm Rights Restoration, and Post-Conviction Relief (Vacating & Sealing Criminal Records).