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

Chapter 13 and Chapter 7 Bankruptcy are both forms of consumer bankruptcy, but the difference between them is the way they handle debt. In Chapter 13 Bankruptcy, the debtor creates a plan that allows them to pay back some or all of their debt over a period of three to five years. This plan is then approved by the Bankruptcy Court. Once the plan is approved, the debtor must make payments to the trustee as outlined in the plan. Once the debtor makes all the payments according to the plan, the remaining unsecured debt may be discharged. In Chapter 7 Bankruptcy, the debtor is not required to make payments. Instead, the bankruptcy trustee is responsible for liquidating the debtor’s nonexempt assets and using the proceeds to pay the creditors. Once all the assets have been liquidated, the remaining unsecured debt can be discharged. Unlike in Chapter 13 Bankruptcy, there is no payment plan involved with Chapter 7 Bankruptcy. The main difference between a Chapter 13 Bankruptcy discharge and a Chapter 7 Bankruptcy discharge is that Chapter 13 offers the debtor the opportunity to pay off some or all of their debt over a period of three to five years. With Chapter 7 Bankruptcy, the debt will be discharged without the need to make any payments.

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

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