How does a Chapter 13 Bankruptcy differ from a Chapter 7 bankruptcy?
A Chapter 7 bankruptcy involves liquidating assets and discharging unsecured obligations where there is no non-exempt property from which to pay unsecured creditors. A Chapter 13 bankruptcy involves repaying priority and secured debts and some portion of unsecured debts over a period of 3 to 5 years. A Chapter 13 bankruptcy normally lasts much longer than a Chapter 7 bankruptcy and is usually more expensive for the debtor.