Differences Between Chapter 7 & Chapter 13 Bankruptcy

If you are swamped with bills and drowning fast, bankruptcy may be the answer. If you're filing for a personal bankruptcy, Chapter 7 and Chapter 13 are the two types you'll have to learn about. Chapter 7 discharges much more debt than Chapter 13.

Some Debt Gone, Some Debt Reorganized

In Chapter 7 bankruptcy, all of the debt you have that can be discharged, is discharged. (Discharged means gone; you no longer have to pay it.) If it's something that qualifies for a discharge, it's done, and the creditor can't continue to demand payment from you. This is a fresh start.

In Chapter 13 bankruptcy, some of the dischargeable debt is discharged, but some isn't. The remaining debt is bundled into a repayment plan. Chapter 13 bankruptcy is a fresh start in a way, but one that still requires you to pay back part of the debt.

Note that there are some debts that can't be discharged. Student loans are an example; even if you qualify for Chapter 7, you'll still have to pay your student loans.

Qualifying Factors

When you file for bankruptcy, you'll have to check your income versus your debt amounts to see which type you qualify for. There are income limits for Chapter 7, so if you're having trouble paying but still make a lot of money, you'll have to file for Chapter 13. Chapter 13 has maximums on the amount of debt you can have.

Get Help With Filing

Filing for bankruptcy is not something you want to attempt yourself. You could, but there are so many forms, exceptions, and tests that it's very easy to forget something. Your chances of being approved for bankruptcy drop if you don't have a lawyer helping you out.

Before you file, speak to a bankruptcy lawyer. You'll have a better chance of successfully completing the filing and moving on with your life.

If you're looking for a trustworthy bankruptcy attorney, contact us at Nashawaty & Rand, your premier Massachusetts bankruptcy law firm.

The Massachusetts bankruptcy attorneys at Nashawaty & Rand serve clients throughout the Greater Boston Massachusetts region including Abington, Avon, Boston, Braintree, Brockton, Bridgewater, Canton, Dedham, Dover, Easton, Hanover, Hingham, Hollbrook, Marshfield, Medfield, Milton, Norwell, Norwood, Quincy, Randolph, Rockland, Sharon, Stoughton, Walpole, Westwood, Weymouth, Whitman, Massachusetts.

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Thank you for your work in my Bankruptcy case. I could not believe the process was so easy, even with our problems in the beginning. Your patience and kind words made it a pleasant experience. Now, I will be debt free for the first time since I can remember and I can enjoy the summer knowing I will be in my house for a long, long time.
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