Chapter 7 liquidates the money you owe and you may assets whenever you are Chapter 13 are a beneficial reorganization of expense. An element of the variation would be the fact within the Chapter 13 you’ll pay back a share of obligations more than three or 5 years. A bankruptcy proceeding is probable recommended when the: – The money you owe are primarily unsecured and dischargeable (credit cards, medical expenses, signature loans) – You may have little or no low-excused assets – You need not dump defaults to retain secured property – You don’t need to throwaway money that could money a section thirteen bundle Part thirteen is likely smart to: – Has low-dischargeable bills (alimony, son help, fees, penalties and fees and penalties, college loans) – Should preserve non-excused possessions – Need certainly to treat home financing otherwise car loan standard – Possess highest internet throw away income
