QUESTION
What is the difference in chapter 7 and 13? Why attorney’s adds service fees?
Asked on May 17th, 2017 on Bankruptcy - New Jersey
5 ANSWERS
Chapter 7 is a liquidation in which you turn over any assets you own that are not protected in exchange for eliminating your debts. These assets get sold and the proceeds are used to pay some of your debts. A Chapter 13 is a payment plan that lasts from 3 ? 5 years. During that time, your attorney is providing legal services to you on an ongoing basis to pay for the substantial amount of work that is being performed to administer your case. Unless you pre-pay the entire legal fee of several thousands of dollars in advance, your legal fees are taken out of the monthly payments made.
Answered on Aug 07th, 2017 at 8:45 PM
A world of difference. Meet with an experienced BK attorney.
Answered on Aug 07th, 2017 at 8:44 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Chapter 7 eliminates your debts without payments to your creditors. Chapter 13 eliminates some debts and allows you to keep your house from being foreclosed.
Answered on Aug 07th, 2017 at 8:44 PM
Bankruptcy Law Attorney serving Livingston, NJ
Partner at
Law Office of Stuart M. Nachbar, P.C.
2 Awards
Lots of differences. Different filing fees, different discharges, one has a repayment plan one does not. Talk to your local professional to see which is more appropriate for you. Also there are some good resources on the bankruptcy courts website which you should look at to educate yourself before speaking with counsel.
Answered on Aug 06th, 2017 at 4:22 AM
7 is a speedy liquidation, 13 a reorganization that needs a court approved plan and takes years to execute. Your personal situation will determine whether either is a benefit to you.
Answered on Aug 06th, 2017 at 4:22 AM