Chapter 7 Bankruptcy Vs Chapter 13 Bankruptcy Part Three
July 17th, 2010
Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy, continued
Bankruptcy situation 5: How would my chapter 7 bankruptcy vs chapter 13 bankruptcy work if I have valuable real estate property that would not be exempt from the bankruptcy estate?
Chapter 7 bankruptcy:
If you have valuable real estate property and you file for a chapter 7 bankruptcy, you may lose the real estate property unless you can either arrange to swap the real estate property with exempt property of a similar value or pay the bankruptcy trustee the fair market value of the non exempt real estate property.
Chapter 13 bankruptcy:
If you file a chapter 13 bankruptcy, you will not lose the real estate property provided that you comply with your repayment plan according to the Chapter 13 bankruptcy.
Bankruptcy situation 6: How would my chapter 7 bankruptcy vs chapter 13 bankruptcy work if I owe back taxes to the IRS?
Chapter 7 bankruptcy:
If you owe back taxes to the IRS, the IRS will most likely not let you file a Chapter 7 bankruptcy. So, if you are in this situation, you cannot file a Chapter 7 bankruptcy.
Chapter 13 bankruptcy:
Similarly, the dischargeability is limited in the Chapter 13 bankruptcy case too.
Bankruptcy situation 7: How would my chapter 7 bankruptcy vs chapter 13 bankruptcy work if my debts are from illegal activities?
If you owe debts resulting from activities such as the ones listed below, then the debts are usually not discharged.
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larceny
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breach of trust
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embezzlement
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fraud
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willful and malicious injury to another or property
Chapter 7 bankruptcy:
These debts are not discharged under a chapter 7 bankruptcy.
Chapter 13 bankruptcy:
These debts are not discharged under a Chapter 13 bankruptcy either.
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