Chapter 7 liquidates your debts and you may property when you’re Chapter thirteen try a great reorganization of one’s costs. A portion of the huge difference is that in Part 13 you’ll pay off a portion of your own obligations over around three or 5 years. Chapter 7 is probable a good idea in the event that: – The money you owe are mainly unsecured and you can dischargeable (handmade cards, medical costs, personal loans) – You have got almost no low-excused property – You don’t need to eliminate non-payments to retain secured assets – You don’t need disposable earnings that may loans a chapter thirteen plan Chapter 13 is probably wise to: – Possess low-dischargeable expenses (alimony, son support, fees, penalties and fees and you may charges, student loans) – Must maintain non-exempt property – Have to get rid of home financing or car finance standard – Enjoys large internet disposable income
