The Differences Between Chapter 7 and Chapter 13 Bankruptcy – ORZ 360

There are a variety of options so that you’re in a position to make an informed choice. Let’s find out more!

Chapter 13 bankruptcy is considered to be a repayment-type filing. This bankruptcy is also called an amalgamation case or repayment bankruptcy for wage earners. It can last between 3 and 5 years. There’s a thing to know first. When filing both claims The court will check into your median income or how much you made in the during the period of six months preceding filing the demand. In the light of this your income, you’ll have the option to make a claim for Chapter 13 or Chapter 7.

The court also looks at your disposable income, which is your leftover cash after having paid other bills and other basic necessities. These funds go to your creditors. If you’ve got $1,000 remaining in the last month, this amount is your monthly payment plan. It’s based upon Chapter 13. It’s possible that the plan for repayment may seem expensive and this is one reason that some would prefer an Chapter 7 filing.

To learn more about the distinctions, check out the other parts of the video. 1epkztlwie.