Chapter 7 & Chapter 13 Differences


Connecticut & Massachusetts Bankruptcy & Real Estate Lawyer

The Difference Between Chapter 7 and Chapter 13 Bankruptcy

Once a debtor files for bankruptcy under either Chapter 7 or Chapter 13, creditors cannot continue any collection efforts, and lawsuits against the debtor are stopped.

A Chapter 7 filing eliminates most of the debtor's financial obligations. Specifically, it gets rid of debt from credit cards, medical bills, past utility bills, promissory notes and personal loans. It is very common for debtors to file and discharge their unsecured obligations and if current on mortgages and car loans retain their homes and automobiles. In order to retain the assets there are certain requirements that need to be met and we help analyze your situation to determine if you are eligible. The filing of the Chapter 7 will help you obtain a "fresh start".

A Chapter 13 bankruptcy gives a debtor an opportunity to reinstate a mortgage or car loan to retain their assets. Additionally the Chapter 13 can be used to extend the repayment time frame for debts that filing Chapter 7 would not eliminate such as child support, alimony and certain taxes.

Within the Chapter 13 proceeding, a plan of reorganization is filed with the court. The debtor is required to pay their secured obligations, however, may discharge their unsecured debts. At the completion of the plan the debtor receives a discharge which, with some exceptions, is similar to the discharge received in a Chapter 7 case.

We listen to you

When you visit our office, we will listen to what you want to achieve. If we can create a plan that will accomplish your goal without filing for bankruptcy, we'll recommend that course of action. However, if bankruptcy is your only viable solution, we'll determine which chapter best suits your needs based on your financial situation.

To learn more about your rights in bankruptcy and debt discharge, contact Susan M. Williams, LLC.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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