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

Chapter 13 Bankruptcy Law and Chapter 7 Bankruptcy Law are both forms of bankruptcy in South Carolina. Although both types of bankruptcy provide an individual with financial relief, there are several differences between the two. Chapter 13 Bankruptcy Law is known as a “debt reorganization” bankruptcy and it allows a person to reorganize their debt while making payments over a span of three to five years. This type of bankruptcy is beneficial for those who have a steady income and want to keep their property, such as a home or car, that they may not be able to retain in a Chapter 7 Bankruptcy. On the other hand, Chapter 7 Bankruptcy Law allows a person to discharge certain debts without having to make any payments. This type of bankruptcy is beneficial for those who have a low income and do not have the ability to repay their debts in a Chapter 13 bankruptcy. Through Chapter 7, you can discharge most unsecured debts, such as credit card balances, medical bills, and personal loans. In conclusion, there are several differences between Chapter 13 Bankruptcy Law and Chapter 7 Bankruptcy Law in South Carolina. Chapter 13 Bankruptcy Law is beneficial for those who have a steady income and want to keep their property, while Chapter 7 is beneficial for those with a low income who cannot repay their debts. Both types of bankruptcy can provide financial relief, but it is important to understand the differences before selecting the bankruptcy type that best fits your situation.

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

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