What is a Chapter 13 Bankruptcy and how is it Different from Chapter 7?

Cesar Montalvo Bankruptcy

Chapter 13 Bankruptcy is less about elimination of debt and more about reorganization of an individual’s finances. Instead of liquidating assets to pay creditors, Chapter 13 provides higher income debtors the chance to restructure debt into a repayment plan that lasts from three to five years. To qualify for Chapter 13, you must have a regular income, you must provide …

What Happens When Filing for Chapter 7 Bankruptcy?

Cesar Montalvo Bankruptcy

When filing for Chapter 7 Bankruptcy protection, debtors can expect to have to turn over a sizeable portion of their property to a so-called bankruptcy estate. A bankruptcy trustee manages this bankruptcy estate, selling property to raise money to pay off a debtor’s creditors. To begin the Chapter 7 Bankruptcy process, you will need to pass a Means Test, file …