What is the difference between Chapter 7 and Chapter 13 bankruptcy? You’re not alone if you’re unclear about the differences between Chapter 7 and Chapter 13 bankruptcy. Both Chapters 7 and 13 provide debt relief choices, but they approach it in different ways. Which one you can go after will depend on your particular financial situation.
While Chapter 13 bankruptcy is frequently referred to as “wage-bankruptcy,” earner’s Chapter 7 bankruptcy is also referred to as “straight bankruptcy.” Once the debt is paid off and the bankruptcy is dismissed, both might give filers a new financial start. However, neither choice enables you to escape from paying certain taxes, child support, or alimony.
Chapter 7 bankruptcy, often known as liquidation bankruptcy, enables those who make too little money to make ends meet and have unsecured debt like outstanding credit card balances and medical bills to get rid of it. No debt