Chapter 7 liquidates your financial situation and assets while you are Section thirteen are good reorganization of your costs. An element of the difference would be the fact from inside the Chapter 13 might pay a portion of your own financial obligation more than three or 5 years. A bankruptcy proceeding is probably recommended if: – Your debts are primarily unsecured and you may dischargeable (credit cards, medical debts, unsecured loans) – You’ve got almost no low-excused possessions – You don’t need to cure defaults to hold secured property – You don’t have disposable earnings which will fund a part 13 bundle Chapter 13 could be best if you: – Provides non-dischargeable bills (alimony, child service, taxes, fees and penalties and you can punishment, student loans) – Should retain non-excused property – Need certainly to beat a mortgage or car loan standard – Keeps highest online disposable earnings
