What is the difference between a part 7 and you may a part 13 bankruptcy proceeding?
Chapter 7 liquidates your financial situation and you may property when you’re Part thirteen are a beneficial reorganization of your debts. The main distinction is that in the Part thirteen might pay-off a portion of one’s loans more than around three or 5 years. Chapter 7 is probably recommended in the event the: – The money you owe are primarily unsecured and dischargeable (handmade cards, scientific bills, unsecured loans) – You’ve got little or no low-exempt assets – You don’t need to beat non-payments to hold secured property – You don’t need disposable money which will finance a section 13 package Section 13 is probably wise to: – Provides non-dischargeable bills (alimony, kid assistance, fees, fines and penalties, college loans) – Should keep low-exempt property – Have to clean out a home loan otherwise car finance default – Has actually large web throwaway earnings