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

Chapter 13 Bankruptcy and Chapter 7 Bankruptcy are two different types of bankruptcy protection available in Virginia. Both types of bankruptcy are designed to help individuals, couples, and businesses erase debt and start fresh financially. However, the types of discharge available and the processes for getting debts discharged differ between Chapter 13 Bankruptcy and Chapter 7 Bankruptcy. The primary difference between a Chapter 13 Bankruptcy discharge and a Chapter 7 Bankruptcy discharge is how long it takes to obtain the discharge. A Chapter 7 Bankruptcy discharge is obtained more quickly than a Chapter 13 Bankruptcy discharge. In Chapter 7 Bankruptcy, most unsecured debt is discharged after the debtor has repaid or completed a payment plan for the bankruptcy proceedings, which typically takes three to five months. In Chapter 13 Bankruptcy, debt is discharged after the debtor has completed the repayment plan, which takes three to five years. Another difference between the two types of discharges is that, with Chapter 7 Bankruptcy, some debts may not be discharged. This includes most secured debts, such as mortgages and car loans, as well as certain taxes and student loans. However, with Chapter 13 Bankruptcy, it is possible to discharge all types of debt, even secured debts, as long as the repayment plan is successfully completed. Finally, the impact of the discharge on the debtor’s credit score is different between the two types of bankruptcy. A Chapter 7 Bankruptcy may stay on the debtor’s credit report for up to ten years, whereas a Chapter 13 Bankruptcy will stay on the debtor’s credit report for seven years. In short, the differences between a Chapter 13 Bankruptcy discharge and a Chapter 7 Bankruptcy discharge include the time it takes to get a discharge, which debts can be discharged, and the impact on the debtor’s credit score.

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

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