Acknowledging the Difference between Chapter 7 and 13
Over 1.5 million people in America alone filed for bankruptcy in the year 2011. It was when the cloud of economic slowdown was slowly disappearing from the industries in the country. While 1.5 million cases of bankruptcy were filed, the percentage of people truly getting the benefits was comparatively lower.
This is predicted to have come under filing for bankruptcy in an inappropriate way. Inappropriate filing of bankruptcy cases is common worldwide. It leads to unfavorable consequences to the people who require immediate attention from the government and legal authorities. Inappropriate filing of bankruptcy cases is a direct result of incomplete or poor knowledge of the process required to file the case.
According to the U.S. Bankruptcy Code, two most essential ways to file for personal bankruptcy are Chapter 7 and Chapter 13. The concerned people are required to have a sound knowledge of these two chapters before they can file for personal bankruptcy. It will help them with their process of getting benefits from the Government and other legal authorities. Legal representation is important and the very first step. However, being well versed with bankruptcy chapter will add extra confidence in you throughout the process.
Let's read in detail about Chapter 7 and Chapter 13 for filing personal bankruptcy. Chapter 7 Bankruptcy
? According to the law made under Chapter 7 Bankruptcy, people who are left with basic necessities such as clothing and furniture are included into Chapter 7 Bankruptcy.
? According to the law made under this chapter, people who are left with no money after paying for basic expenses are categorized into Chapter 7.
In fact, people who aren't even meeting their basic expenses are included in this chapter. ?
The advantage of filing for Chapter 7 is that discharges the most unsecured debts. In fact, it helps them eliminating completely. ?
This is one of the quickest legal processes under bankruptcy. People get their discharges in a couple of months.
? Creditors aren't allowed to contact people who've filed for bankruptcy during the process. And while the automatic stay is in effect. In fact, not even after the debts are discharged.
? People qualifying "means test" and who've undergone a requisite pre-filing session with credit counselor are eligible to file for Chapter 7 bankruptcy protection. Chapter 13 Bankruptcy ?
According to the laws made under Chapter 13 Bankruptcy, people who are left with significant equity at home or property are categories into this Chapter of Bankruptcy.
? Chapter 13 Bankruptcy is filed by the people who have income to living expenses but can't afford to pay on debts on regular basis.
? People can posses the property and its most parts and can have convenience to expand time to pay debts.
? People have 3-5 years to catch up with delinquent accounts according to agreed schedules set by bankruptcy trustee.
? Under Chapter 13 Bankruptcy, people are liable to make monthly payment to bankruptcy trustee which is for distribution. Creditors aren't allowed legally to contact during these 3-5 years to catch up delinquent accounts.
? More importantly, co-signers are also protected in most cases.
? People who have unsecured debts below $ 360, 475 and secured less than $ 1, 081, 400 can file for Chapter 13 Bankruptcy.
This is predicted to have come under filing for bankruptcy in an inappropriate way. Inappropriate filing of bankruptcy cases is common worldwide. It leads to unfavorable consequences to the people who require immediate attention from the government and legal authorities. Inappropriate filing of bankruptcy cases is a direct result of incomplete or poor knowledge of the process required to file the case.
According to the U.S. Bankruptcy Code, two most essential ways to file for personal bankruptcy are Chapter 7 and Chapter 13. The concerned people are required to have a sound knowledge of these two chapters before they can file for personal bankruptcy. It will help them with their process of getting benefits from the Government and other legal authorities. Legal representation is important and the very first step. However, being well versed with bankruptcy chapter will add extra confidence in you throughout the process.
Let's read in detail about Chapter 7 and Chapter 13 for filing personal bankruptcy. Chapter 7 Bankruptcy
? According to the law made under Chapter 7 Bankruptcy, people who are left with basic necessities such as clothing and furniture are included into Chapter 7 Bankruptcy.
? According to the law made under this chapter, people who are left with no money after paying for basic expenses are categorized into Chapter 7.
In fact, people who aren't even meeting their basic expenses are included in this chapter. ?
The advantage of filing for Chapter 7 is that discharges the most unsecured debts. In fact, it helps them eliminating completely. ?
This is one of the quickest legal processes under bankruptcy. People get their discharges in a couple of months.
? Creditors aren't allowed to contact people who've filed for bankruptcy during the process. And while the automatic stay is in effect. In fact, not even after the debts are discharged.
? People qualifying "means test" and who've undergone a requisite pre-filing session with credit counselor are eligible to file for Chapter 7 bankruptcy protection. Chapter 13 Bankruptcy ?
According to the laws made under Chapter 13 Bankruptcy, people who are left with significant equity at home or property are categories into this Chapter of Bankruptcy.
? Chapter 13 Bankruptcy is filed by the people who have income to living expenses but can't afford to pay on debts on regular basis.
? People can posses the property and its most parts and can have convenience to expand time to pay debts.
? People have 3-5 years to catch up with delinquent accounts according to agreed schedules set by bankruptcy trustee.
? Under Chapter 13 Bankruptcy, people are liable to make monthly payment to bankruptcy trustee which is for distribution. Creditors aren't allowed legally to contact during these 3-5 years to catch up delinquent accounts.
? More importantly, co-signers are also protected in most cases.
? People who have unsecured debts below $ 360, 475 and secured less than $ 1, 081, 400 can file for Chapter 13 Bankruptcy.