The MN Bankruptcy Blog | Learn the Bankruptcy Process & More

(Video) The Simple Differences Between Chapter 7 and 13 Bankruptcy

Written by Wesley Scott | August 23, 2017 at 5:59 PM

Wouldn’t it be nice to understand the simple differences between a Chapter 7 and Chapter 13 bankruptcy? Like, give it to me in plain English so I can actually understand my choices, right? So many lawyers talk in legalisms that are hard for most of us to understand. So here are the basic differences in simple terms...

CHAPTER 7 BANKRUPTCY

A Chapter 7 bankruptcy, also known as the fresh start bankruptcy, is like hitting a reset button on your life. The debt you have is eliminated over the course of a 4 month process. The focus in a Chapter 7 bankruptcy is on your assets. The vast majority of Chapter 7 bankruptcy cases filed have no non-exempt assets. So, for example, if you have 50k in credit card debt, at the end of a four month process, you are debt free.

Click here to learn more about Kain & Scott's unique 4 step process to make the process of filing Chapter 7 Bankruptcy smoother while we do most of the work and you relax.

CHAPTER 13 BANKRUPTCY

A Chapter 13 bankruptcy is a government sponsored debt consolidation plan. In the vast majority of plans you make payments, based on what you can afford to pay, and whatever doesn’t get paid off gets wiped out, tax free, forever! Amazing? We think so! The payment you make back on your proposed plan is determined by your lawyer and you, not some government official or creditor.

Click here to learn more about Kain & Scott's unique 5 step Chapter 13 bankruptcy. Simple and straight forward path to get your life back.