What Is The Difference Between Chapter 7 and Chapter 13 Bankruptcy?
Chapter 7 is typically knows as "liquidation" bankruptcy while Chapter 13 involves debt reorganization. Chapter 7 involves selling non-exempt property in order to pay creditors, while debtors are able to keep all property in Chapter 13. However, it does require repaying unsecured creditors an amount that is equal to the value of non-exempt assets.
Individuals may file for either type of bankruptcy, however, business entities may also file for Chapter 7. In order to qualify for Chapter 7, one must pass the Means Test, whereas Chapter 13 eligibility depends on the total of unsecured and secured debt. The limits change every few years, so it is recommended to get in touch with a bankruptcy attorney near you who is up to date with bankruptcy law guidelines.
It takes 3 - 5 months to receive a debt discharge through Chapter 7, while Chapter 13 involves a repayment plan that is between 3 - 5 years. For more information regarding your options when it comes to resolving your debt, reach out to our Queens bankruptcy attorney at the Law Office of Seni Popat, P.C. today. Your initial consultation is free! Contact us online or call (718) 340-3385.
Involved In a Serious Accident?
If you are suffering from injuries due an accident caused by another party's negligence, the Law Office of Seni Popat, P.C. is here for you. You may be entitled to compensation to cover wage loss, damage to property, pain and suffering, and more. With more than 10 years of experience, we can provide aggressive representation when it comes to fighting for the compensation you deserve. Reach out to us for all your injury law needs.