What are the differences between filing for Chapter 7 and Chapter 13 bankruptcy?

Filing for Chapter 7 or Chapter 13 bankruptcy in Nebraska are two different types of bankruptcy. The main difference is the amount of debt you have and how much you can pay. Chapter 7 bankruptcy applies when you cannot afford to pay back any of your debt. This type of bankruptcy is typically used by individuals with high levels of debt, such as medical bills and credit card debt. Under Chapter 7, the court will discharge your debts so you don’t have to pay them. The downside of this type of bankruptcy is that you may have to put up certain assets as collateral. Chapter 13 bankruptcy, on the other hand, is used when you have a steady income and can afford to make some payments towards your debt. The court will set up a payment plan where you pay back your creditors over three to five years. You must keep up with these payments and follow the court’s plan. If you can follow the payment plan, most of your debts will be discharged at the end of the term. Ultimately, the decision of which type of bankruptcy to pursue depends on your overall financial situation and how much debt you have. You should consult a bankruptcy lawyer to discuss the best course of action for your particular case.

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What are the differences between filing for Chapter 7 and Chapter 13 bankruptcy?

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