Ch. 7 Vs. Ch. 13

What Are The Major Differences Between A Chapter 7 And A Chapter 13?

In this article, you will discover:

  • The differences between Chapter 7 and Chapter 13 bankruptcy
  • Which bankruptcy is easier to file or qualify for
  • Which bankruptcy is better for one’s credit

The major difference between Chapter 7 and Chapter 13 bankruptcies is that you do not make payments under a Chapter 7 and you make payments to a trustee under Chapter 13 bankruptcy. Once a person files a Chapter 7 bankruptcy and it is discharged, the person walks away without paying the debt that was discharged. In a Chapter 13 bankruptcy, the debt is reorganized according to how much disposable income one has. Then the debtor makes payments to the Chapter 13 trustee. A Chapter 7 bankruptcy is over in 90 days, while a Chapter 13 bankruptcy takes 36 to 60 months.

Is Filing A Chapter 7 Harder Or Easier To File Or Qualify For Than A Chapter 13?

A Chapter 7 can be harder to qualify for because of the income restrictions. You should consult with an experienced bankruptcy attorney who will not charge for that consultation, because we need to make a determination whether or not and what kind of bankruptcy the debtor needs. One can only know what is right for them once they have consulted with an experienced bankruptcy attorney.

Is A Chapter 7 Or A Chapter 13 Better For My Credit?

A debtor is able to rebuild their credit much faster after filing a Chapter 7 bankruptcy. It takes longer to rebuild credit after a Chapter 13 filing, because it takes longer for the person to get the discharge. You cannot begin to rebuild credit while you are still in a Chapter 13.

For more information on Chapter 7 Vs. Chapter 13 Bankruptcy In Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (888) 402-5557 today.

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