Chapter 7 and chapter 13 are the two types of bankruptcies which the debtors prefer, an attorney can help you as in which type of bankruptcy one can file and what is it importance?
As bankruptcy has many long term affects and it spoils the debtor credit for almost ten years thus it should be considered as the last option. If debtor has to file bankruptcy and it’s the last means than which chapter he should file Chapter 7 or chapter 13 bankruptcy? Below given are the chapter 7 and chapter 13 bankruptcy rules. Bankruptcyonly, a leading name in bankruptcy services will provide you right guidance as in which chapter you need to file.
Chapter 7 bankruptcy discharge
Chapter 7 bankruptcy is usually called as straight bankruptcy as it can discharge all the personal debts. Although few assets like home furnishings, vehicle and other travel related assets can be exempted from the penalty. Retirement’s savings are also exempted according to the new bankruptcy laws.
In the year 2005 the legislation was passed and this made it more difficult to file for a discharge for chapter 7 bankruptcy. The state has established income limits for this discharge. If in some cases, personal limit exceeds the established limits than chapter 7 cannot be filed. The legislation passed by the congress also extended the time between the filing process and chapter 7 bankruptcy cannot be re-filed again until eight years of first filing.
Chapter 13 bankruptcy discharge
Chapter 13 bankruptcy information will help you to learn more about discharge. This chapter is designed to clear all the personal debts. This filing is similar to a monthly installment plan. The trustee of the court establishes a monthly payment amount and the money are further distributed to pay the debts. The repayment plan is usually for a period of 3-5 years. Once the time expires then debts would be considered satisfied.
The debtors who couldn’t file personal bankruptcy for chapter 7, due to their income are eligible to file for chapter 13 bankruptcy. This filing permits the debtor to keep his majority of the assets. Chapter 13 bankruptcy even permits for shorter filing period. In few cases the period is as short as two years.
Chapter 7 and 13 filing fees
The individuals can file personal bankruptcy without the need of an attorney and the bankruptcy information can be taken from the online sources. Chapter 7 filing fees are around $229 and that of chapter 13 is $274.
Bankruptcy is filed under the federal court and many of its rules are governed by the federal government. There are some rules which are governed as the state level and they are different from state to state. A well qualified bankruptcy attorney will look at the debtor’s financial condition and it advices the best. Other options also include personal budget control, debt consolidation and debt counseling services, these all should also be considered.
Get Free No-Obligation Bankruptcy Counseling for Ch.7 discharge
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