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Law Offices of Carol D. Ellis, P.A. Law Offices of Carol D. Ellis, P.A.
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Difference Between Chapter 7 & 13

The Difference Between Ch. 7 & Ch. 13

Gain Insight from Our Palm Beach Bankruptcy Lawyer

Chapter 7 and Chapter 13 both deal with personal debt and offer a fresh beginning. Chapter 7, also called liquidation bankruptcy, is completed in less time, so you will be relieved of much of your debt within a few months. In doing so, many of your assets could be liquidated to satisfy your creditors. In many cases, this is not required or other arrangements can be made as long as you make payments.

Under Chapter 13, also known as debt reorganization or debt restructuring, you will repay much of your debt over several years. Because of this, you will retain all or nearly all of your possessions. Bankruptcy law is complex and there are pitfalls that must be avoided.

If you are trying to determine if Ch. 13 or Ch. 7 bankruptcy is better for your case, we encourage you to fill out a free case evaluation today. Our Palm Beach bankruptcy lawyer will reach out shortly!

The Benefits of Both Chapters

Within 180 days prior to filing for bankruptcy, you must receive credit counseling from a court-approved agency according to the law. The counseling can be conducted in person, via the internet, or over the telephone. If you determine that bankruptcy is your best option, you will be issued a certificate which is required for filing. You will need to gather bank statements, tax returns, and other documents. If you wish to keep your vehicle, your home, or other assets, make sure you mention this to your bankruptcy lawyer.

Benefits of Chapter 7:

  • A fast solution to debt
  • Most types of loans are addressed
  • Offers a new start and a chance to rebuild credit
  • Stops debt collectors
  • Can save your home from foreclosure

Benefits of Chapter 13:

  • Allows you to keep most of your property
  • Helps solve debt through a payment plan
  • Will allow you to be free from debt in about 3 to 5 years
  • Grants an automatic stay, which stops debt collectors and foreclosure

The Bottom Line

In most cases, Chapter 13 and Chapter 7 provide the opportunity to keep your car and your home. Sometimes a vehicle which has already been repossessed can be recovered once you've filed. Whatever the case, our goal is to assist individuals who are over burdened with debt. We do this by helping them select an option that fits their situation and helps resolve their debt problems. We are proud to say that our clients are very satisfied with the personal care and attention we provide to them.

Whether you wish to file for Chapter 7 or 13, you need to work with an experienced bankruptcy attorney lawyer in Palm Beach. Contact us to begin rebuilding your life.

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