Raise your productivity with Chapters 7 and 13 Forms

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Commonly Asked Questions about Chapters 7 and 13 Forms

The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.
A Chapter 13 case offers numerous advantages over a Chapter 7 for those with a lot of debt secured by property or collateral (vehicles, furniture, home, land, etc). Many of these debts can be extended, altered, reduced or restructured in the Chapter 13 Plan.
What Is the Cheapest Type of Bankruptcy? Not only are the fees of Chapter 7 bankruptcy lower, but you also end up paying less to your creditors. While Chapter 7 only requires that you pay the value of your liquidated assets, a Chapter 13 bankruptcy could result in you paying far more over three to five years.
The main cons to Chapter 7 bankruptcy are that most secured debts wont be erased, you may lose nonexempt property, and your credit score will likely take a temporary hit.
While it can be a fresh start, filing for bankruptcy comes with costs, depending on the size, type and complexity of your debt. Filing Chapter 7 bankruptcy typically costs between $1,800 and $2,300 while a Chapter 13 filing can cost between $4,500 and $5,300.
To convert, you need to do the following: Seek permission from the court by filing a motion. Convey the motion to the bankruptcy trustee, creditors, U.S. Trustee, and other interested parties. Be present at the short hearing.
Should you find yourself forced to file for bankruptcy, it is important to be aware of your options and the benefits they can offer you. Both Chapter 7 and Chapter 13 Bankruptcies Trigger an Automatic Stay. Both Bankruptcies Seek Ways to Satisfy Existing Debts. Both Options Are Available for Individuals or Businesses.
A chapter 13 bankruptcy is also called a wage earners plan. It enables individuals with regular income to develop a plan to repay all or part of their debts.
Its a Long Term Commitment Filing Chapter 13 bankruptcy requires you to make a long-term commitment to the process. Tough To Get Credit or a Mortgage for 7 Years Other impacts include the inability to get credit cards at a good rate, and filing Chapter 13 makes it tough to get a mortgage.
Chapter 7 and Chapter 13 bankruptcy handle eliminating your debt differently. With Chapter 7, unsecured debts are discharged and assets may be liquidated to repay your creditors. On the other hand, with Chapter 13, you keep assets but must submit to a plan to repay creditors.