Chapter 7 and you will Section thirteen bankruptcy proceeding display a number of parallels. One another case of bankruptcy options are accessible to individuals, and you will both provide you with the chance to release certain debts. Both options immediately impose an automated remain to store financial institutions off bringing after that action facing you, providing you with protection during the submitting techniques.
Here’s the number one change: Chapter 7 case of bankruptcy try a good liquidation off expense, and you can Chapter thirteen try an excellent reorganization from costs.
Chapter 7 Bankruptcy proceeding
Declaring Chapter 7 bankruptcy is release specific unsecured outstanding debts having zero attachment to property. You are not expected to pay down these debts. Not as much as particular points, secured costs including auto loans and you will home loans shall be released if you no more want to secure the assets. (more…)