What is the difference between bankruptcy under Chapter 7 & Chapter 13?
A. A Chapter 7 proceeding is generally considered to be a more drastic move than Chapter 13. However, there are many different factors to consider in determining which avenue is right for you. Under Chapter 7, all of your non-exempt assets are sold and used to pay creditors. Any debts still remaining are discharged by the court. Under Chapter 13, you devise a plan to pay off debts over time, after negotiating with your creditors and the bankruptcy trustee. After this time, any remaining debts are discharged by the court.
