What is the difference between a Chapter 7 versus a Chapter 13?
Chapter 7 is also called Straight Liquidation. In a Chapter 7, we can usually eliminate unsecured debts, such as credit cards, medical bills, repossession deficiencies, and signature loans, which allows you to get a fresh start, and financial independence. Chapter 13 is also called Debt Consolidation, or the Wage Earners Plan. Chapter 13 is primarily designed to allow you to stop foreclosures and repossessions, and allows you to make up the back payments in a 36 to 60 month plan. In a Chapter 13, we can also consolidate other bills, such as your car payment, whereby you only pay the value of the car, and not the loan balance. Other debt that can be consolidated includes tax debts, student loans, and child support or alimony arrears. 2. Do I qualify for a Chapter 7 Bankruptcy? There is no specific dollar amount of debts to qualify for bankruptcy. I have filed bankruptcies for people who owe anywhere from $2,000 to $150,000 or more. The main requirement for filing a Chapter 7 bankruptcy
