Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy

Below is a comparison of Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy. When filing for bankruptcy, most people choose between a chapter 13 or 7 bankruptcy. Chapter 7 and chapter 13 bankruptcy are designed for different purposes. This section of Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy provides a comparison of chapter 7 bankruptcy and chapter 13 bankruptcy. There are many sources for information on chapter 7 and 13 bankruptcy.

When deciding between a chapter 7 bankruptcy and a chapter 13 bankruptcy, use the following Chapter 7 Bankruptcy vs Chapter 13 Bankruptcy chart to help you make informed decisions.

Bankruptcy situation 1: How would my chapter 7 bankruptcy vs chapter 13 bankruptcy work if I am very behind on your mortgage payments?

Chapter 7 bankruptcy:

With a chapter 7 bankruptcy, you will probably have to give your real estate property back to the bank whom you owed the mortgage payments. Sometimes, you can negotiate with the bank to pay the value of the nonexempt equity to the bankruptcy trustee from any income you have since the filing of chapter 7 bankruptcy.

Chapter 13 bankruptcy:

With a chapter 13 bankruptcy, you can repay what you owe over 3 to 5 years and keep the current mortgage payments on time. If you file a chapter 13 bankruptcy, you will keep your home.

Bankruptcy situation 2: How would my chapter 7 bankruptcy vs chapter 13 bankruptcy work if I filed for bankruptcy previously and received a discharge within the past 8 years?

Chapter 7 bankruptcy:

If you previously file a chapter 7 bankruptcy within the past 8 years, you cannot re-file a chapter 7 bankruptcy. However, if your previous bankruptcy was a chapter 13 bankruptcy, then you can file another bankruptcy IF you paid at least 70% of your debts off during the repayment period.

Chapter 13 bankruptcy:

If your previously filed a chapter 13 bankruptcy, you can re-file another bankruptcy. Under the new bankruptcy law, you have to wait at least 5 years between each bankruptcy filing.

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