Chapter 7 is a discharge of all your debts by liquidating your assets, if you meet the minimum levels for debt income then you will be able to switch to a chapter 13, the chapter 13 will allow you to form a
restructuring plan,
it is on average a 3 year program and the level of money you have to pay back will
be determined by the court.
Chapter 13 will enable you to keep some income to pay off a mortgage or debt on a car which
you would have lost, it allows you to pay the debt off while retaining some income.
Chapter 7 is different because it may means a total liquidation of your assets.
Difference between a chapter 7 bankruptcy and a chapter 13 bankruptcy has been explained in the article. These are two popular bankruptcy options used in the country. Here, it is to be noted that you may have to opt for bankruptcy in case you are financially in a very bad situation and have no other option left except filing bankruptcy. In chapter 7, your property is liquidated and the amount is used to pay to the creditors. Chapter 7 bankruptcy is known as the straight or liquidation bankruptcy. Again, in chapter 13 bankruptcy, you are offered a debt repayment plan and you have to repay the debts within 3 to 5 years.
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