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

Chapter 7 Bankruptcy and Chapter 13 Bankruptcy are two different types of bankruptcy available to individuals in the state of Oklahoma. Chapter 7 Bankruptcy is also known as “liquidation bankruptcy” and is the most common type of bankruptcy. When filing Chapter 7, most of the debtor’s debts are discharged, meaning that they are no longer legally obligated to pay them. However, some debts cannot be discharged, such as student loans, alimony, and child support. Chapter 13 Bankruptcy is also known as “wage earner’s bankruptcy”. When filing Chapter 13, the debtor’s debts are reorganized and they are put on a 3-5 year payment plan. This plan allows the debtor to pay back a portion of their debts with the remainder being discharged. Chapter 13 Bankruptcy also protects the debtor’s property from foreclosure. The key difference between Chapter 7 Bankruptcy and Chapter 13 Bankruptcy is that with Chapter 7 all debt is discharged while with Chapter 13 a portion of the debt is discharged and the remainder is paid over the repayment period. Chapter 7 is ideal for those who have the income and assets to pay off their debt quickly. Whereas, Chapter 13 is best suited for those who have a regular income and want to keep their assets.

Related FAQs

What kind of debt counseling is available before and after filing for bankruptcy?
What is the difference between discharging and writing off a debt?
What is bankruptcy?
What is the difference between a Chapter 11 and a Chapter 13 bankruptcy?
What is the role of the bankruptcy judge?
What is the difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy?
How long does the bankruptcy process take?
What type of information will I need to provide to my attorney before filing for bankruptcy?
How will filing for bankruptcy affect my spouse?
What kind of debt relief is available to married couples filing for bankruptcy?

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

Related FAQs

Related Blog Posts