Chapter 7 bankruptcy is also known as a liquidation bankruptcy, and you do not typically pay anything to your unsecured creditors, unless the bankruptcy court requires you to liquidate your non-exempt assets. A Chapter 7 bankruptcy is typically completed in a relatively short period of time, and at the end your unsecured debts, like credit cards, are discharged.
In a Chapter 13 Bankruptcy, you will be required to repay some or all of your unsecured debt back through the court over a period of up to five years.
Chapter 7 bankruptcy is quicker, but if your income is too high you cannot file Chapter 7, due to the Bankruptcy Reform Act.
If you own assets or have high income Chapter 13 will often be the correct answer. Since the law is complicated, we suggest you contact a bankruptcy attorney to fully explore your options.
I am in chpt 13 currently. My income recently increased 30%... will my monthly payments to the trustee increase? If so, will my payment plan end sooner?
2 Comments:
Chapter 7 bankruptcy is also known as a liquidation bankruptcy, and you do not typically pay anything to your unsecured creditors, unless the bankruptcy court requires you to liquidate your non-exempt assets. A Chapter 7 bankruptcy is typically completed in a relatively short period of time, and at the end your unsecured debts, like credit cards, are discharged.
In a Chapter 13 Bankruptcy, you will be required to repay some or all of your unsecured debt back through the court over a period of up to five years.
Chapter 7 bankruptcy is quicker, but if your income is too high you cannot file Chapter 7, due to the Bankruptcy Reform Act.
If you own assets or have high income Chapter 13 will often be the correct answer. Since the law is complicated, we suggest you contact a bankruptcy attorney to fully explore your options.
By Bankruptcy Expert, at 9:33 AM
I am in chpt 13 currently. My income recently increased 30%... will my monthly payments to the trustee increase? If so, will my payment plan end sooner?
By Naomi, at 8:52 PM
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