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Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy, continued

Bankruptcy situation 3: What happens to my specific debts under a Chapter 7 Bankruptcy vs. Chapter 13 Bankruptcy?

Some types of debts such as the debts shown below may not be discharged. Examples of such debts are:

• student loans (there are exceptions such as if repayment would cause hardship)
• court ordered fines or penalties
• child support or alimony
• taxes that are less than 3 years past due and filed less than 2 years ago or were assessed less than 240 days before filing.

Chapter 7 Bankruptcy:

With a Chapter 7 Bankruptcy, these debts are usually not discharged.

Chapter 13 Bankruptcy:

These debts must be paid in full by the end of the Chapter 13 Bankruptcy repayment plan. If these debts are not paid in full, you can still pay the balance at the end of your Chapter 13 Bankruptcy.

Bankruptcy situation 4: How would my Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy work if I have enough disposable income / money for a Chapter 13 Bankruptcy but I want to file a Chapter 7 Bankruptcy?

Some people prefer to file a Chapter 7 Bankruptcy to a Chapter 13 Bankruptcy. However, if you have enough disposable income to file and go through a Chapter 13 Bankruptcy, then the bankruptcy court may not let you file a chapter 7. The bankruptcy court could dismiss or cancel your bankruptcy case. In another word, you are too rich or have too much money for a Chapter 7 Bankruptcy.