Chapter 7 And Chapter 13 Are Not The Same – Understand The Difference

December 30, 2015/0 Comments

It is real hard to file for bankruptcy, when you have no money left. From the point of attorney’s fees to other expenses, the situation may get real harsh. You can handle such matters very well provided you have the support of an efficient lawyer, who will help you sails through smoothly.

BKlawyers San Diego has efficient lawyer team, who know the job well. It is wise to hire a bankruptcy lawyer because every judicial system keeps on making changes in the legal system to prevent fraudulence. So if you hire an expert representative, who keeps updated with the new amendments then the blend will be perfect.

Not just the amendments even the basic legal understanding also affects. For instance chapter 13 and chapter 7 are different in meaning. TO understand what is being meant here, read further.

Chapter 7 And Chapter 13 Are Not The Same - Understand The Difference

Filing Bankruptcy under Chapter 7

Under chapter 7, you are preparing to file for the liquidation of all the non-exempt assets in the beginning. This way you may pay your debt to a very high extent. Several debts become discharged once you conclude with the point of bankruptcy. Some examples are:-

  • Collection agency accounts
  • Medical bills
  • Personal loans

This filing of bankruptcy is easy and fast to process. This may approximately take 3-6 months. You may be able to discharge maximum of your debt amount and may keep most of your assets like your car and home.

This kind of provision is not for all. Some special criteria have to be fulfilled to be able to extract the benefits. If you do not then you may go ahead with chapter 13.

Chapter 13

The biggest difference between chapter 7 and chapter 13 is the plan of repayment of your debts. Your assets are not touched in this chapter and you may return the debts over a period of may be 3-5 years. You may do so from the disposable income you have.

For this there are some guidelines provided by the law, abide by them. Through this compliance you will fall under the bracket of legal process and if God forbid, you are not able to repay the debts then you can always sell your assets as this provision is still kept as an option.

Chapter 13 is more convenient than chapter 7 as you have space to breathe in terms of repaying your debts. With the help of chapter 13, people have experienced easy bankruptcy.

You file for bankruptcy either in chapter 7 or chapter 13. Both the chapters are dissimilar and have different pre-requisites and parameters.

No one likes to be declared bankrupt, yet there are some people who may take the undue advantage of this provision, which makes the genuine people suffer, a lot. Filing for bankruptcy is a sensitive matter and requires diligence, while keeping abreast with the new amendments in the laws. Try to seek help from a professional who knows both the chapters and understands your circumstance.


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