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

Chapter 7 and Chapter 13 bankruptcy are two types of bankruptcy an individual can file for in Kansas. Chapter 7 bankruptcy is also known as liquidation bankruptcy and is the most common type of bankruptcy filed in Kansas. In this type of bankruptcy, your non-exempt assets are sold to pay off your debt. After the non-exempt assets are sold, remaining debt is discharged. This makes Chapter 7 bankruptcy a good option for those who have limited assets and want to get rid of their debts quickly. Chapter 13 bankruptcy, also known as reorganization bankruptcy, is the second type of bankruptcy an individual can file for in Kansas. In Chapter 13 bankruptcy, the individual is allowed to keep their property and the debt is divided into a payment plan. This payment plan is set up by the court, and it allows the person to pay back the debt in installments over a period of 3-5 years. This is typically the type of bankruptcy used by those with higher incomes in order to pay back their debts over time. The main difference between Chapter 7 and Chapter 13 bankruptcy is the amount of debt relief offered and the length of time for repayment. Chapter 7 offers a complete discharge of debt, while Chapter 13 provides a repayment plan of 3-5 years. Additionally, Chapter 7 requires the debtor to sell non-exempt assets while Chapter 13 does not.

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

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