Which Is Better: Chapter 7 or Chapter 13?
Other People Are Reading
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Chapter 7 Bankruptcy Is the Most Common
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Chapter 7 is the most common form of bankruptcy that is filed and may one of the quickest ways to relieve debt. Chapter 7 involves the bankruptcy trustee selling the debtor's non-exempt assets and using proceeds to pay off creditors. The debtor may lose property by filing a Chapter 7 petition.
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Chapter 13 Bankruptcy Aids Wage Earners
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Chapter 13, also referred to as a wage earner's plan, is a form of bankruptcy in which a plan is developed to help the debtor get out of debt withing three to five years. To be eligible for Chapter 13, the debtor must earn regular wages.
Bottom Line
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The decision to file a Chapter 7 or Chapter 13 bankruptcy is dependent on factors such as the debtor's assets, wages and the speed in which he wishes to relieve his debt.
References
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