What Is The Difference Between Chapter 7 and Chapter 13?
Chapter 7 bankruptcy is the short form. In most cases Chapter 7 bankruptcy eliminates your debts in 90-120 days.
To prove you are eligible to file a Chapter 7 bankruptcy, we must show that
Chapter 13 Bankruptcy Will Save Your Home From Foreclosure And Write Down Your Other Debts To A Fraction Of The Amount Owed
Chapter 13 Homesaver Bankruptcy catches back up on your mortgage and radically reduces your other debts. You make your payments to the Chapter 13 Trustee, who then pays your individual creditors. Your plan will last from 36 to 60 months. If you have a mortgage and car loans, you will continue to pay for these items in your plan. You also pay a reduced percentage of your unsecured debt in the plan. We are a debt relief agency. We help people file bankruptcy under the bankruptcy code.
To prove you are eligible to file a Chapter 7 bankruptcy, we must show that
- You have not completed a chapter 7 filed under eight years ago, nor a chapter 13 filed under six years ago
- You do not have some very valuable asset like a non-IRA/non-401k stock portfolio, (401k's/IRA's cannot be seized in bankruptcy)
- Your regular net income is less than or barely exceeds your ordinary monthly expenses
- Your total household yearly gross income during the most recent six months was less than the median income for a household of its size. However, the median income test is not set in stone. Even if you are over the median income, you may still be eligible under Chapter 7 if you have certain offsets like high mortgage payments, high car payments, child support payments, or expensive health insurance payments.
Chapter 13 Bankruptcy Will Save Your Home From Foreclosure And Write Down Your Other Debts To A Fraction Of The Amount Owed
Chapter 13 Homesaver Bankruptcy catches back up on your mortgage and radically reduces your other debts. You make your payments to the Chapter 13 Trustee, who then pays your individual creditors. Your plan will last from 36 to 60 months. If you have a mortgage and car loans, you will continue to pay for these items in your plan. You also pay a reduced percentage of your unsecured debt in the plan. We are a debt relief agency. We help people file bankruptcy under the bankruptcy code.