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What is the Difference Between a Chapter 7 and a Chapter 13 Bankruptcy and What Kind of Case Should I File?

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What is the Difference Between a Chapter 7 and a Chapter 13 Bankruptcy and What Kind of Case Should I File?

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In a Chapter 7 case, the Debtor (that’s you), receives a discharge (debts wiped out) of all of their debts, unless they choose to reaffirm certain debts (this is explained below) or certain debts are declared non-dischargeable by the Court (this rarely occurs and is explained below). Chapter 7 normally takes approximately 4 months to complete. In a Chapter 13 case, the Debtor is required to make payments on their debts over 3 to 5 years in one convenient monthly payment. In Chapter 13, most Debtors receive a discharge of 90% of what they owed to their unsecured creditors at the end of their case. Generally speaking, Debtors who do not have too much equity in their assets and who are current with their payments owed to secured creditors, choose to file Chapter 7, if they are eligible, so they can receive a “fresh start” in 4 months. Generally speaking, those Debtors who have too much equity in their assets or who are seriously delinquent in the payments they owe to creditors, choose to

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