What is the difference between a chapter 13&a chapter 7 bankruptcy?
There are several differences between Chapter 7 and Chapter 13 bankruptcies. Both allow people relief from their debts, but the big difference lies in how this relief is obtained and the debts repaid.SimilaritiesBoth chapters are for individuals or married couples. Both require detailed information about their debts and assets to be filed with the U.S. Bankruptcy Court.Chapter 7Chapter 7 bankruptcies call for a debtor’s non-exempt assets to be sold and the proceeds distributed to creditors, thus discharging the debts, according to Bankruptcy Basics, a website of U.S. Courts. Bankruptcy laws allow each state to decide what property is exempt from liquidation.Discharge of DebtsNot all debts may be discharged in a Chapter 7 bankruptcy.