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

The difference between a Chapter 13 Bankruptcy discharge and a Chapter 7 Bankruptcy discharge is quite significant. With a Chapter 13 Bankruptcy, you will be required to make repayment plans. This means you will identify a repayment plan and pay your creditors at least a portion of what you owe, usually over a period of three to five years. Creditors are usually required to accept the repayment plan and any money not paid as part of the repayment plan is discharged. In contrast, with a Chapter 7 Bankruptcy, you will not have to make repayment plans. Instead, most of your debts are typically discharged. That means they are legally wiped out without any need for you to pay them back. However, there are some debts, such as alimony, student loan debt, and taxes, which cannot be discharged and those will require repayment. Overall, a Chapter 7 Bankruptcy is generally seen as a faster and more effective way to get out of debt since most of your debts will be discharged. On the other hand, a Chapter 13 Bankruptcy is more involved and has a longer repayment plan, but it can provide an easier way to pay off debts since you will only need to pay a portion of what you owe.

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

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