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

A Chapter 13 Bankruptcy discharge and a Chapter 7 Bankruptcy discharge are two different types of bankruptcy filings, each with their own advantages and disadvantages. A Chapter 13 Bankruptcy discharge is a repayment plan for debtors, in which a payment plan is set up between the debtor and their creditors. The debtor pays the creditors back over a three to five year period, and upon completion of the repayment plan, the remaining balance is discharged and the debtor is no longer required to pay back that debt. A Chapter 7 Bankruptcy discharge, on the other hand, is a type of bankruptcy filing where a debtor’s assets and debts are liquidated. Creditors are then paid with the money generated from the liquidation of the debtor’s assets. Once the debt is repaid in full, the remaining balance is discharged and the debtor is no longer required to pay back that debt either. The main difference between a Chapter 13 and a Chapter 7 Bankruptcy discharge is that with a Chapter 13, debtors can keep all of their assets, whereas with a Chapter 7, all assets are liquidated to repay creditors. Additionally, with a Chapter 13 Bankruptcy discharge, the repayment plan is typically much longer, while a Chapter 7 Bankruptcy discharge allows debtors to be discharged from their debt much quicker.

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

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