Chapter 7 is a liquidating estate, and chapter 13 is a reorganization estate. In a 13 you have to come up with a plan to pay a percentage of what is owed over a 5 year period. In a 7 you do not. But you must be under the median income for the state and size of family in order to qualify for a 7.
Answered on May 27th, 2014 at 9:00 PM