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

Chapter 7 and Chapter 13 Bankruptcy are both types of bankruptcy protection that are available under Idaho law. The main difference between the two is the way in which debts are handled. In Chapter 7 Bankruptcy, most unsecured debts (such as credit cards) are discharged and the debtor’s assets are sold to pay off the remaining debt. In Chapter 13 Bankruptcy, the debtor’s assets are not sold off, and instead a repayment plan is established to slowly pay off the debt over a period of several years. Another difference between the two is the eligibility requirements. To qualify for Chapter 7 Bankruptcy, the debtor must pass a means test, which takes into account their income and assets. Chapter 13 Bankruptcy, on the other hand, has no such requirements, and can be filed by any debtor regardless of the amount of money they make or own. Finally, Chapter 7 Bankruptcy is much faster than Chapter 13 Bankruptcy. Chapter 7 Bankruptcy can take as little as a few months to complete, while Chapter 13 Bankruptcy can take up to five years. In summary, Chapter 7 Bankruptcy involves the liquidation of assets to pay off debts, while Chapter 13 Bankruptcy involves a repayment plan and does not require the debtor to liquidate their assets. Additionally, Chapter 7 Bankruptcy is only available to those who pass a means test, while Chapter 13 Bankruptcy has no such requirement. Finally, Chapter 7 Bankruptcy is much faster than Chapter 13 Bankruptcy.

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

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