You may be considering bankruptcy, and you have many questions about things including a Chapter 7 and Chapter 13 comparison. You are certainly not alones, as many people today are facing economic hardships. In fact, one out of 747 housing units in the state of Indiana received a foreclosure notice during September of 2012.
There are several differences when considering a Chapter 7 and Chapter 13 comparison. Here is just a brief overview of the Chapter 7 and Chapter 13 comparison.
Starting the Chapter 7 and Chapter 13 comparison, Chapter 7 requires you to take a means test to prove that your income is less than that of the median income in your state for a family of the same size. It is considered a liquidation bankruptcy that will eliminate unsecured debts.
Chapter 7 is generally for low income debtors who have no assets. Uner Chapter 7, debtors will be assigned a trustee. This person will oversee the bankruptcy, including the sale of property to pay back creditors.
Continuing with the Chapter 7 and Chapter 13 comparison, Chapter 13 is considered a reorganization bankruptcy for people who may be able to pay back all or some of their debts. Under that U.S. Bankruptcy Code, in order to file a Chapter 13 bankruptcy you may not have more than $922,975 in secured debt and $307,675 in unsecured debt. A Chapter 13 bankruptcy requires that you repay all or part of your debt under a three to five year repayment plan. Debtors filing under this plan are allowed to keep their property, while repaying their debts via the repayment plan. This is a big difference in the Chapter 7 and Chapter 13 comparison.
No matter the Chapter 7 and Chapter 13 comparison, you should understand that falsifying bankruptcy forms constitutes perjury, and bankruptcy fraud is considered a federal crime.
You may have many more questions about a Chapter 7 and Chapter 13 comparison. This is a great time to contact a Bankruptcy attorney Indiana for your bankruptcy questions and answers. Bankruptcy law attorneys can guide you through the entire process to the end. Even after bankruptcy, you can still rebuild your credit score with the assistance of a bankruptcy lawyer Indiana. Ger more information on this topic here.