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Bankruptcy FAQs
Why do people choose to file chapter 7 over chapter 13 bankruptcy?
The primary differences between a chapter 7 and a chapter 13 bankruptcy filing are as follows:
(1) chapter 7 tends to have lower fees. However, you can file for chapter 13 more quickly since the fees can be paid over time. You cannot file for chapter 7 until you have paid all of the fees.
(2) In chapter 7, you can keep only your exempt property, and the trustee may sell much of the rest to pay your creditors. In chapter 13, you may generally keep all of your assets.
(3) You can qualify for chapter 13 filings only if you have regular income and debts below a certain level. If you do not have a regular income, and have significant debts, chapter 7 may be a better choice for you.
(1) chapter 7 tends to have lower fees. However, you can file for chapter 13 more quickly since the fees can be paid over time. You cannot file for chapter 7 until you have paid all of the fees.
(2) In chapter 7, you can keep only your exempt property, and the trustee may sell much of the rest to pay your creditors. In chapter 13, you may generally keep all of your assets.
(3) You can qualify for chapter 13 filings only if you have regular income and debts below a certain level. If you do not have a regular income, and have significant debts, chapter 7 may be a better choice for you.
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