Differences Between Chapter 13 and Chapter 7

Are you considering filing for bankruptcy? If so, you need to understand the differences between different types of bankruptcy filings.

Many people who file for bankruptcy will be eligible for Chapter 13 where you will be asked to develop a repayment plan for your debts. This gives you three to five years to pay back your creditors through monthly payments that are more affordable. Once you have paid off all your required debts you will then be given a discharge of your remaining debts.

If you are successful in obtaining Chapter 13 bankruptcy you must be forewarned that the progress is slow and not everyone is successful in completing it. Yet it can be very helpful for people in certain circumstances, such as when someone wants to avoid foreclosure due to late mortgage payments. In addition, those who are not eligible for loan modifications, those whose income makes them ineligible for Chapter 7 bankruptcy, and those who want to keep non-exempt assets that he/she couldn't keep under other types of bankruptcies.

Do you need assistance with your bankruptcy petition and proceedings?  Don't wait to contact us to speak with a Chicago bankruptcy lawyer who can offer insight and help.