Ask the Attorney
Ask the Attorney: Why a Chapter 7 Bankruptcy is Better
Q: I’m looking to file bankruptcy, but I don’t know the difference between Chapter 7 and Chapter 13. What’s the better option?
There are several reasons why Chapter 7 bankruptcy can be much better to most people than Chapter 13 bankruptcy. Chapter 7 is usually quicker than Chapter 13, many people can keep all or most of their property, and they don't have to pay back a portion of their debts, like in Chapter 13. Of course, not everyone qualifies for Chapter 7 bankruptcy. A typical Chapter 7 bankruptcy case is opened and closed within three to six months, and the person filing emerges debt-free except for mortgages, car payments, and certain types of debts that survive bankruptcy, such as student loans, recent taxes and unpaid child support. Although you can lose property in Chapter 7 bankruptcy, the overwhelming majority of people who file don't. Bankruptcy lets …
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