Chapter 7 Versus Chapter 13

While they have similarities, it is important to note that Chapter 7 and Chapter 13 bankruptcies differ in some critical ways.

First and foremost, an individual must pass the means test in order to qualify for Chapter 7 bankruptcy, demonstrating that he or she is under the defined threshold for property and income.

Chapter 7 is often called a liquidation filing because it immediately discharges debts and liquidates certain assets to pay priority creditors. While some assets are exempt from liquidation, it opens one up to significantly more loss of property than a Chapter 13.

In the case of a Chapter 13 filing, also known as a wage earner's bankruptcy, debts are consolidated and are to be paid partially in a three- to five-year period. At the end of the period, the remaining debts are discharged and the filer has a new lease on life, financially. Additionally, it may be possible to convert a Chapter 13 into a Chapter 7 depending on circumstances and how things go.

Chapter 13 is also considerably more complex, making the need for an attorney that much more significant.

If you are working through these and related issues in or around Sandusky, Ohio, our legal team is here for you.

We at The Law Offices of Shelly L. Kennedy, Ltd., will work directly with you so that you can understand what filing makes the most sense for your situation. From there we will take action so you can reclaim financial health as soon as possible.

To reach out and schedule an initial consultation to discuss issues related to Chapter 7 versus Chapter 13 filing with our bankruptcy lawyer, call 419-967-6039 or email the firm.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.