Most Common Types Of Consumer Bankruptcies |
CHAPTER 7 |
CHAPTER 13 |
Often Called |
Liquidation or total bankruptcy |
Repayment plan bankruptcy |
Duration of Case |
Usually four months to discharge order. Cases may remain open longer. |
Minimum: three years
Maximum: five years |
Key Strength For Both Types Of Cases - Immediate relief from credit cards, payday loans, tax levies and other collections. |
Other Strengths |
Good when you are current on things you want to keep.
You may pay a creditor what an item is worth instead of what you owe (redemption).
Fastest and cheapest. |
Allows you to catch up car and mortgage payments over time.
Freezes penalties on back taxes while you repay.
Can allow you to keep property subject to turn-over in a Chapter 7 case.
|
Can You Keep Assets? |
You may have to turn-over unprotected property to be sold but most cases are “no asset”. |
You may keep your “unprotected” assets by paying their value over time to creditors through the plan. |
Eligibility Limits |
Yes. Prior cases, income level and other factors impact eligibility. |
Yes. Prior cases, income and debt levels as well as other factors impact eligibility. |
This information is designed to provide you with a brief comparison. To receive information about your eligibility for bankruptcy and which Chapter would be most appropriate for your circumstances, please contact St. Bernard Bankruptcy to schedule a no risk consultation. The following is not intended to be legal advice and does not attempt to fully describe bankruptcy rules, procedures and outcomes.
