Chapter 7 vs. Chapter 13 Bankruptcy
When an individual or couple files for bankruptcy, they must choose between Chapter 7 and Chapter 13. Both have their pros and cons, which should be considered before making a decision.
Chapter 7 bankruptcy is also known as liquidation bankruptcy. It allows the filer to wipe out most of their debts and start fresh. In order to qualify, the filer must pass a means test. This means that their income must be below the median income for their state. If it is not, they may still qualify if they can prove that their expenses are too high.
Chapter 13 bankruptcy is also known as reorganization bankruptcy. It allows the filer to keep all of their property, but they must repay some or all of their debt over a three- to five-year period. The amount that needs to be repaid is based on the filer's income and assets
The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.
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