What is the difference between chapter seven and thirteen bankruptcy?

Bankruptcy is a very complicated process. The simple question of the difference between chapter 7 and chapter 13 is huge. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy. I am attaching a link to some free videos that explain how bankruptcy works. http://www.dianedrain.com/Bankruptcy/BankruptcyQuestionnaires/BKQuestionnaireInd.htm. There is no cost for the initial discussion. Please take time to educate yourself about bankruptcy and to determine which attorney is the best to assist you in the process. Don't assume the attorney is being completely honest about their experience and capabilities. Check them out. Avoid the attorneys who advertise on TV or profess a 100% success rate in their Internet ads. It costs hundreds or thousands of dollars for these ads and someone has to pay for them - the clients. These attorneys mass produce the work and do not offer the client the hands on assistance that is necessary in a well-planned bankruptcy. Normally these firms assign all or most of the work to paralegals and the client rarely talks to an attorney. When interviewing the attorney ask them how long they have practiced bankruptcy law. Ask what percentage of their practice is focused on consumer work. Ask whether they are experienced in both chapter 7 and chapter 13 cases. Ask the attorney for references. Ask about their policy of returning phone calls. They should be committed to answering specific questions about your situation and help you understand your options. If, after talking with them you are still confused about the issues you raised, find another attorney. Check them out with the various ranking sources: such as www.AVVO.com, and the State Bar. An attorney is should be your guide through this process. They should educate you, be there to assist you in how to avoid pitfalls and help you plan for your future after bankruptcy. There are hundreds of "bankruptcy" attorneys in Arizona. Of those just a few will fit the criteria set forth above. Again, bankruptcy is a very complicated process and you want to use an attorney who will be there when you need them. My best to you.

The differences between Chapter 7 and Chapter 13 are vast and to understand them you really have to do your homework or seek advice from a bankruptcy attorney. Typically, any portion of the tax refund for the year in which you file that is deemed "non-exempt" has to be turned over to the bankruptcy Trustee for the benefit of creditors of the bankruptcy estate. .

Chapter 7 is a discharge of all eligible debts; chapter 13 is a repayment plan. It depends on your income and expenses whether you qualify for a chapter 7,

Chapter 7 provides a release from most debts if a person meets the means test and has les than $150 of income after paying there monthly household expenses. Some debts such as student loans, taxes less than 3 years old, and others are not dischargeable. Ch 13 is a payment plan on generally a percentage of your unsecured debt and 100% on the secured property you want to retain depending on circumstances. If exempt, you will retain your tax refund in a 7.

A Chapter 7 is a liquidation. If you own anything that is both valuable and unprotected (very rare) the trustee sells it and uses the money to pay down your debts. Once that money is gone, any debt (qualifying) remaining is discharged. A Chapter 13 is a Reorganization. You make a monthly payment (based on ability to pay, not the amount of debt) for 36 to 60 months. That money is used to pay down your debt. Once you are done, any qualifying debt remaining is discharged. You may be able to protect your tax refund in a Chapter 7 (depending on what else you own) but in a Chapter 13, the Trustee will expect you to turn it over as part of your payment plan. As with any loan, whether or not it is given out is up to the lender. Guaranteed student loans should not be affected by filing bankruptcy, other kinds of college loans may be.

Your question about differences between Ch 13 and Ch 7 cannot be answered in an e-mail. In general terms a Ch 7 discharges all debt that is dischargeable. See attachments. In a Ch 13 you pay back a portion of your debts. Ch 13 is useful if you have tax debt or mortgage arrears. Tax refundsIn a Ch 7 a trustee may take all or part of your next refund, no worries after that. In a Ch 13 generally the trustee does not bother, although there are exceptions. Filing a BK should have no effect on your eligibility to receive financial aid for college.

The differences between a chapter 7 and 13 are too numerous to explain in this short context. Basically, a 13 is where you make a monthly payment to a chapter 13 trustee for up to 5 years. These are filed usually to save a house from foreclosure or if the debtor has disposable income after paying all living expenses. The majority of cases filed are chapter 7s. There are no payments made to a trustee and generally last 3-4 months before obtaining the discharge.

Chapter 7 bankruptcy involves a discharge, or wiping-out, of your obligation to pay certain debts. You must qualify for Chapter 7 based on your income and obligations. Chapter 13 bankruptcy involves putting you on a three to five year payment plan to repay a portion of your debts through a plan administered by a trustee of the Bankruptcy Court. You must qualify for Chapter 13 based on your ability to make consistent payments under the plan. Some people are in a position to choose under which Chapter to file. Most are clearly qualified for one or the other. As a general rule, neither will discharge or reduce federally guaranteed student loans. Both will negatively affect your credit rating, but Chapter 13 generally less so. Much will depend on your credit at the time you file your bankruptcy petition. Your ability to receive student loans will depend on the loan provider.

Question: What is the difference between chapter seven and thirteen bankruptcy? Chapter 7 is liquidation and nothing (generally) is paid to the pool of unsecured creditors. This takes 4-6 months generally from start to finish. The debtor(s) must QUALIFY under the MEANS TEST to be able to file a Chapter 7 ...... if a presumption of abuse arises, then the case can be dismissed. Also, if between Schedules I & J there appears to be over $100.00 / mo. in disposable income, then generally that debtor must file a Chapter 13. Chapter 13 cases must file a plan and make monthly payments to the trustee for 36 months if their income is below the median, and if above the median, then a 60-month plan is filed. Chapter 13 at least repays the pool of unsecured creditors a small portion of what they are owed. There are MANY MORE DIFFERENCES, but this is just a HIGHLIGHT of some of the differences. Question Detail: If I choose to file bankruptcy, will I still receive my yearly tax returns? By filing bankruptcy, will I stop receiving college loans now and in the future? Student loans are generally NON-DISCHARGEABLE. FORGET ABOUT GETTING THOSE DISCHARGED !! Tax returns MUST be filed yearly and for a 2012 filing you need to provide the trustee with your 2010 & 2011 tax returns. Whether or not you get to keep your refund depends on when you file and how much the refund is.