Chapter 7 vs. Chapter 13 Bankruptcy

Chapter 7 bankruptcy, also known as a liquidation, is a legal option that can help you clear some or all of your debt. ... Chapter 13 bankruptcy is also a legal option that can help you get some debt discharged, but allows you to keep your property and repay your debt by completing a three- to five-year repayment plan.

1. Which is better Chapter 7 or Chapter 13?
2. What is the difference between Chapter 7 11 and 13?
3. Should I file bankruptcy chapter 7?
4. How much debt do you have to have to file Chapter 7?
5. What do you lose when you file Chapter 7?
6. What happens to your bank account when you file Chapter 7?
7. What is the average Chapter 13 payment?
8. Is it better to file a Chapter 11 or 13?
9. What debts Cannot be discharged?
10. How bad is it to file Chapter 7?
11. What can you not do when filing Chapter 7?
12. Can I keep my cell phone in Chapter 7?

Which is better Chapter 7 or Chapter 13?

For many debtors, Chapter 7 bankruptcy is a better option than Chapter 13 bankruptcy. ... For instance, Chapter 7 is quicker, many filers can keep all or most of their property, and filers don't pay creditors through a three- to five-year Chapter 13 repayment plan.

What is the difference between Chapter 7 11 and 13?

Key Takeaways. Chapter 7 bankruptcy doesn't require a repayment plan but does require you to liquidate or sell nonexempt assets to pay back creditors. ... Chapter 13 bankruptcy eliminates qualified debt through a repayment plan over a three- or five-year period.

Should I file bankruptcy chapter 7?

When should I think about Chapter 7 bankruptcy? You can only file for bankruptcy once every eight years. Before filing for Chapter 7, at least one of these should be true: You have a lot of debt and income and/or assets a creditor could take.

How much debt do you have to have to file Chapter 7?

There is no minimum amount of debt you must have in order to file for bankruptcy relief. While the amount of your debt is an important factor to consider, there are other more important factors to take into account in determining if a bankruptcy filing is in your best interest.

What do you lose when you file Chapter 7?

Many Chapter 7 filers can keep all or most of their property—but not always. When a filer must give up property in Chapter 7, the case is an asset case. By contrast, in a no-asset Chapter 7 bankruptcy case, the debtor keeps all property, cash, and valuables.

What happens to your bank account when you file Chapter 7?

In most Chapter 7 bankruptcy cases, nothing happens to the filer's bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won't affect it.

What is the average Chapter 13 payment?

The Overall Chapter 13 Average Payment. The average payment for a Chapter 13 case overall is probably about $500 to $600 per month. This information, however, may not be very helpful for your particular situation.

Is it better to file a Chapter 11 or 13?

Chapter 11 bankruptcy works well for businesses and individuals whose debt exceeds the Chapter 13 bankruptcy limits. In most cases, Chapter 13 is the better choice for qualifying individuals and sole proprietors.

What debts Cannot be discharged?

Debts Never Discharged in Bankruptcy

• Alimony and child support.
• Certain unpaid taxes, such as tax liens. ...
• Debts for willful and malicious injury to another person or property. ...
• Debts for death or personal injury caused by the debtor's operation of a motor vehicle while intoxicated from alcohol or other substances.

How bad is it to file Chapter 7?

Filing for bankruptcy has a bad reputation in many circles due to the fact that it damages your credit and involves discharging debts that will likely never be repaid. Sure, Chapter 7 bankruptcy isn't great for your credit score and will appear as a public record for 10 years after filing.

What can you not do when filing Chapter 7?

Here are some things to avoid before you file for Chapter 7 or Chapter 13 bankruptcy.

1. file at the wrong time.
2. use retirement funds unnecessarily.
3. prepare bankruptcy paperwork carelessly or incorrectly.
4. purchase luxury goods and services on credit or take cash advances.
5. sell or transfer property for less than it's worth.

Can I keep my cell phone in Chapter 7?

As long as you are up to date with paying your bill or even if you can bring it current, you will be able to continue the cell phone contract without issue. ... Once you have decided whether you want to keep your cell phone contract or use bankruptcy in order to terminate it, your bankruptcy lawyer can help you do so.