Eligibility
There are important differences in eligibility between these chapters. This is complicated and is discussed in the question titled: xxxxxxxx
Difference in Payments
The main difference is that chapter 7 the debtor almost never has to make any payments to the court on his/her debts. In chapter 13, the debtor almost always has to make monthly payments for 36 to 60 months.
Difference in how long it takes
Chapter 7 usually takes 3 to 5 months. Chapter 13 takes about 36 months or 60 months depending usually on whether the debtor’s annual income is below or above the means test amount. Call Attorney Bates at 330-339-0000 if you have questions about this.
Difference in what happens to the debtor’s property
In chapter 7 most or all of the debtor’s property is usually protected by law and is not lost, but on occasion, some of the debtor’s property will be sold by the trustee to pay towards the debtor’s debts. In chapter 13, the debtor keeps all property. If you want to know whether you would lose any property in bankruptcy, call Attorney Bates, 330-339-0000
There are other important differences between chapter 7 and chapter 13. Chapter 13 often allows the debtor to remove some types of liens from real property. This is complicated. Please call Attorney Bates at 330-339-0000 to discuss at no charge.
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