Schiller Park Bankruptcy Attorney On The Difference Between Chapter ...

Chapter 13 is a much different case than a Chapter 7 states Schiller Park bankruptcy attorney.  A Chapter 13 bankruptcy case can last anywhere from 3 to 5 years whereby a Chapter 7 case is going to complete within approximately 3 to 4 months.  The huge difference between Chapter 13 and Chapter 7 is the amount of money that the debtor is going to have to pay out-of-pocket over the life of the case.  In a Chapter 13, the debtor is repaying either all or a portion of his debt over a 3 to 5 year period whereby in a Chapter 7 case, the debtor is getting a fresh start for most of his debts. 

Now, there are some debts in a Chapter 7 that are not eliminated such as student loans, recent taxes, parking tickets, child support, maintenance payments and debts incurred by fraud.  However, the overwhelming majority of unsecured debts such as medical bills, credit card bills and personal loans are easily eliminated. 

Chapter 13 also differs in that the debtor is keeping all of his property while he is in the repayment plan.  In Chapter 7, sometimes the debtor gives up property in exchange for the fresh start and that is known as liquidation bankruptcy.  Chapter 13 also involves much more scrutiny by the court and by the Chapter 13 trustee to determine whether or not the debtor is paying all of the monthly money that he needs to pay based on his income, his expenses and of course his debts.  Chapter 7 does not have a monthly payment plan and the case can only really lasts approximately 90 days to 120 days from start to finish.  Chapter 13 is where you want to save a home from foreclosure.  Chapter 7 is where you want to keep your home if you are up to date.  

Thus, there are significant differences between Chapter 13 and Chapter 7 and the Proctor Chapter for you is really based on your particular situation.  Your particular situation will include income, expenses, assets and liabilities.  Make sure you consult with an experienced bankruptcy attorney prior to making your own decision on whether Chapter 13 or Chapter 7 is your best option.