What is the difference between chapter 7 bankruptcy and chapter 13 bankruptcy?
By Wine Country Family Law & Bankruptcy Office, P.C. on July 22nd, 2020 in
In a nutshell, chapter 13 is a payment plan bankruptcy where you typically pay off a small portion of your debt over either three or five years with the remaining debt (with some exceptions) wiped out at the end of the three or five year payment plan. Whereas chapter 7 bankruptcy wipes out all of your debt, with some exceptions, without any payment plan requirement, the process taking approximately three to four months from the date your case is filed, assuming no complications arise. There are income limitations for chapter 7 filers (unless the debt is primarily non-consumer debt) and you may lose assets in chapter 7, although this happens very infrequently. No assets can be taken in chapter 13 bankruptcy.