Assuming that you are an individual and are contemplating bankruptcy as an option for debt relief, you may have wondered about the differences between Chapter 7 and Chapter 13 bankruptcies. There are multiple differences between them to carefully consider, assuming that you have already carefully considered bankruptcy in lieu of other options.
Some, but not all of the distinctions between Chapter 7 and Chapter 13 are:
- How much money do you make? If you make more than the Chapter 7 "means test" allows for, then Chapter 7 may not be available to you. In that case, you may be looking at Chapter 13 more by default than by choice.