7 vs. Chapter 13 Bankruptcy
file for Chpater 7 bankruptcy for one simple reason: to
wipe out all of their dischargeable debts. But there are
several reasons some individuals chose to file Chapter 13
instead of Chapter 7 bankruptcy. Following are some of
nonexempt property is liquidated under Chapter 7
bankruptcy (e.g. most equity on your home,
expensive clothing, etc.). If you have valuable
nonexempt property that you wish to keep, then
filing under Chapter 13 is the better option.
Chapter 7, if you are behind on your car
payments, you either have the option of paying
off the loan in full or give up the vehicle.
Under Chapter 13, on the other hand, you can keep
your vehicle and make the payments under the
reorganized payments plan.
an individual who is seeking to file bankruptcy,
has filed for bankruptcy in the last 6 years, he
must file Chapter 13 instead of Chapter 7
Chapter 7, creditors can go after your cosigner
to recover your debts. This consequence is
avoided under Chapter 13.