Chapter 7 vs. Chapter 13 Bankruptcy
Bankruptcy is a complicated legal process that can be both intimidating and confusing for individuals. Two of the most common types of bankruptcy are Chapter 7 and Chapter 13. Both options offer individuals the opportunity to eliminate their debt, but there are significant differences between them.
Under Chapter 7 bankruptcy, qualifying individuals can have all or some of their debts discharged, while under Chapter 13 they must reorganize their finances by developing a repayment plan with creditors. To qualify for Chapter 7 bankruptcy, you must pass the “means test” which determines whether your income is low enough to qualify based on median income levels in your state. By contrast, anyone who does not meet these requirements may still be able to file for Chapter 13 bankruptcy by proving financial hardship and ability to repay at least some of their debts over three to five years.
The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of the debt and start over.
Our goal is to help you find a fresh start FAST!
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