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A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy. Usually, the debtor remains \u201cin possession,\u201d has the powers and duties of a trustee, may continue to operate its business, and may, with court approval, borrow new money.
Chapter 7 and Chapter 13 bankruptcy both affect your credit score the same \u2013 having a Chapter 13 bankruptcy on your credit report will not be any better for your score than a Chapter 7.
What Kind of Property Do Bankruptcy Exemptions Protect? Federal law and state laws protect a lot of the same kinds of property, including: Motor vehicles. Personal property like household goods, furniture, and musical instruments.
Chapter 7 and Chapter 13 are very different types of bankruptcy. The critical difference is that Chapter 7 revolves around the liquidation of assets to repay debts. In contrast, Chapter 13 is a debt restructuring option that can make it easier to manage your outstanding debts.
A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
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What Is a Chapter 13 Hardship Discharge? A hardship discharge is a discharge the court grants you before you complete all of the required payments under your Chapter 13 repayment plan.
This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
Chapter 7 bankruptcy is a legal debt relief tool. If you've fallen on hard times and are struggling to keep up with your debt, filing Chapter 7 can give you a fresh start. For most, this means the bankruptcy discharge wipes out all of their debt.
Filing for Chapter 7 bankruptcy eliminates credit card debt, medical bills and unsecured loans; however, there are some debts that cannot be discharged. Those debts include child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.
Any bankruptcy filing could also negatively impact your credit for some time. A Chapter 13 bankruptcy can remain on your credit report for up to 10 years, and you will lose all your credit cards. Bankruptcy also makes it nearly impossible to get a mortgage if you don't already have one.

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