Chapter 7 and 13 Bankruptcy Relief

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Chapter 7 and 13 Bankruptcy Relief

The Bankruptcy Code provides for personal bankruptcy relief under chapters 7 and 13.

Chapter 7 

Chapter 7 provides in general for the discharge of debt together with the liquidation of non-exempt property by the Chapter 7 trustee. Chapter 7 is usually used by those with lower income and little or no non-exempt property.

Chapter 13 

Chapter 13 is usually used by those with higher income or substantial non-exempt property. It is also used by those who need to reorganize their secured debt, such as mortgage to avoid foreclosure. Under chapter 13, a debtor is allowed to reorganize their debt under a chapter 13 plan over a period of three to five years.

By |2018-08-11T16:02:09+00:00July 15th, 2018|Uncategorized|Comments Off on Chapter 7 and 13 Bankruptcy Relief

About the Author:

Jordan E. Bublick is a Miami Bankruptcy Attorney