What are the differences between Chapter 13 Bankruptcy and Chapter 7 Bankruptcy?

Chapter 13 Bankruptcy and Chapter 7 Bankruptcy are two different ways to handle bankruptcy. Chapter 13 Bankruptcy allows an individual to keep their assets by reorganizing their debt into a repayment plan, while Chapter 7 Bankruptcy eliminates most debts and allows the individual to discharge their debts after a certain period of time. In Connecticut, Chapter 13 Bankruptcy is available to individuals who meet certain requirements. To qualify, you must have a steady income, have less than $419,275 in unsecured debt and less than $1,257,850 in secured debt. Chapter 13 Bankruptcy also requires the individual to come up with a repayment plan which is approved by the court. This plan must outline how the individual will repay their debt within three to five years. Chapter 7 Bankruptcy on the other hand is available to individuals who meet certain income requirements and do not have enough disposable income to pay their debts. This type of bankruptcy allows individuals to discharge their debt after the mandated waiting period. In Connecticut, the mandated waiting period is typically four to six months. The main differences between Chapter 13 and Chapter 7 Bankruptcy are the repayment plans and the length of time it takes to discharge the debt. With Chapter 13, individuals must come up with a repayment plan and usually take three to five years to completely pay off their debt. On the other hand, Chapter 7 Bankruptcy allows individuals to discharge their debt after the mandated waiting period, usually four to six months.

What are the differences between Chapter 13 Bankruptcy and Chapter 7 Bankruptcy?

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