What are the differences between Chapter 7 and Chapter 13 Bankruptcy
The biggest difference between Chapter 7 and Chapter 13 bankruptcy filings is the means in which debt is repaid to creditors. Both chapters allow for the relief of debts, however Chapter 13 requires a court-ordered repayment plan, where a portion of the debt is paid back to creditors. On the contrary, Chapter 7 filing does not require a repayment plan and certain debts can actually be eliminated.
While there are many other differences between the two bankruptcy filings, it is best to contact a lawyer who can help you determine which legal action is best for you.
What about your assets?
States have specific exemptions when it comes to bankruptcy filings. New Jersey state law protects or a portion of your property from being seized in a Chapter 7 filing. Chapter 13 filing allows you to keep all of your assets, but of course some exemptions can apply.
To learn more about the differences between Chapter 13 and Chapter 7 bankruptcy, take a look at the infographic below.
If you need help filing for bankruptcy in New Jersey, contact Ralph A. Ferro Jr.
[ifographic by Steven F. Bliss, San Diego Attorney]