What are the advantages of chapter 7 and of chapter 13?

Advantages and benefits of chapter 7

1. It’s relatively quick, about 3-4 months.

2. You don’t have to make payments to the bankruptcy trustee.

3. Many, if not all, of your debts will be wiped out. Call Mr. Bates at 330-339-0000 to find out if you want to know if you have any debts that won't be wiped out.

4. Most people do not lose any property other than collateral for loans on which they can't make the payments.

5. You can often keep a house or a car. You will have to keep making the payments, if there are any.

6. The attorney’s fee and filing fee are less than they would be in a chapter 13 bankruptcy.

Advantages and benefits of chapter 13

1. You can keep all of your property.

2. You can usually decrease the payments on your debts.

3. You probably won’t have to pay back all of your debts at 100%.

4. You can wipe out some debts that you couldn’t wipe out in chapter 7.

5. You can stop tax collections.

6. You often can get caught up on house, car, and other debt payments without losing the house, car, or other collateral.

7. You often can stop foreclosures or repossessions.

8. If you filed a prior bankruptcy, you can file a chapter 13 after two years have passed if the prior case was a chapter 13 and after 4 years have passed if the prior case was a chapter 7. You will have to wait four or eight years to file a chapter 7 bankruptcy.