Chapter 13 Bankruptcy is the second most common and requires that the debtor makes monthly payments to a Trustee for the period of three to five years, and then the Trustee will distribute the money to the creditors that are owed. Following Chapter 13 bankruptcy, the debtor will receive a discharge of debt.
Which Bankruptcy Chapter Should I File?
Time Frame: A typical Chapter 7 bankruptcy case takes three to four months to complete. Time Frame: The Chapter 13 payment plan lasts three or five years (depending on your income). At the end, most of your unsecured debt balances will be discharged. Property: Many Chapter 7 debtors keep all or most of their property.
How do I file Chapter 7 with no Money?
In other circumstances you may be able to file a petition with the court to reduce or eliminate your Chapter 7 filing fee. Finally, the best possible advice for any who has any amount of income through a job is to stop paying anyone and take your next paycheck directly to a bankruptcy attorney.
Is it Better to file a Chapter 7 or 13?
Many debtors assume that Chapter 7 bankruptcy is better than Chapter 13 bankruptcy because Chapter 13 bankruptcy requires debtors to repay some debt, whereas Chapter 7 bankruptcy wipes out qualifying debt without a repayment plan. But it isn’t that simple. Here are some good reasons to file for Chapter 13 bankruptcy.