Chapter 7 vs. Chapter 13

 Chapter 7 Bankruptcy
Liquidation of Assets

 Chapter 13 Bankruptcy
Reorganization

 Chapter 7 Bankruptcy Is Commonly Used When:

 Chapter 13 Bankruptcy Is Commonly Used When:

 You have little property except for the basic necessities like furniture and clothing.
 You have equity in a home or other property and you want to keep it.
 You have little or no money left after paying basic expenses each month—or you're not even meeting basic expenses.
 You have regular income and can pay your living expenses, but you can't keep up the scheduled payments on your debts.

 Advantages of Chapter 7 Bankruptcy

Advantages of Chapter 13 Bankruptcy

 Most unsecured debts can be eliminated through discharge.  Keep most, if not all, of your property and reorganize your debts and get caught up on mortgages and car payments over time.
 The chapter 7 bankruptcy process moves fairly quickly.  Most debtors receive a discharge within 4 to 6 months after the case is filed.
 You'll have 3-5 years to catch up delinquent accounts such as your mortgage and car payments based on a budget that works for you. 
 Creditors can't contact you while the automatic stay is in effect—or after debts are discharged.  No more harassment.
 You'll make one affordable monthly payment  to the bankruptcy trustee for distribution—you'll have no direct contact with creditors during the bankruptcy protection period of 3-5 years.
 

 Co-signors may also be protected by the Chapter 13 bankruptcy.

 Who Can File For Chapter 7 Bankruptcy

Who Can File For Chapter 13 Bankruptcy

 Debtors who pass the 'means test' and completed the approved credit counseling course may file for Chapter 7 bankruptcy protection.  Any individual debtor whose unsecured debts are below $360,475 and whose secured debts are less than $1,081,400.

The experienced attorneys at Sterling Bankruptcy Center can advise you whether Chapter 7 Bankruptcy or Chapter 13 Bankruptcy protection is right for you.  Call today for your free consultaiton.

Have bankruptcy questions about your specific circumstances?

Click here for a free on-line evaluation and an attorney will contact you or call 888-744-8227 to schedule your free consultion.

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