What is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy?

Chapter 7 and Chapter 13 bankruptcy are two types of bankruptcy that are available to individuals who are burdened with unmanageable debt in Hawaii. Chapter 7 bankruptcy is a form of liquidation bankruptcy. This type of bankruptcy allows individuals to discharge or eliminate most of their debts from credit cards, medical bills, and personal loans. Chapter 7 bankruptcy does not require a repayment plan, and filers can generally keep some of their exempt assets. In addition, Chapter 7 bankruptcy generally takes less time than Chapter 13. Chapter 13 bankruptcy is a form of reorganization bankruptcy. This type of bankruptcy requires individuals to make payments on a repayment plan that is proposed to the court. Debtors can use this type of bankruptcy to catch up on missed mortgage or car payments, and also to keep their nonexempt assets. Chapter 13 bankruptcy can take up to five years to complete, and requires debtors to make regular payments to the court during this period. In summary, Chapter 7 bankruptcy is a form of liquidation bankruptcy, while Chapter 13 bankruptcy is a form of reorganization bankruptcy. Chapter 7 bankruptcy allows individuals to discharge or eliminate most of their debts, while Chapter 13 requires individuals to make payments on a reorganization plan for up to five years.

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What is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy?

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