The Difference Between Chapter 7 and Chapter 13 of the Bankruptcy Code
Individuals who have amassed large debts have many options However, if an individual finds that non-bankruptcy alternatives are not feasible, a decision then must be then made between filing a Chapter 7 liquidation proceeding or a debt adjustment proceeding under Chapter 13
You Can File for Bankruptcy Chapter 13 With a Regular Income
The US Congress passed a law that established a set of uniform laws to govern how bankruptcy was handled. These laws were placed under a system called the bankruptcy code. In this code there are chapters that pertain to various issues in bankruptcy. One such chapter deals with allowing the debtor to start a new life whilst they pay off their future debts. This bankruptcy chapter 13 is one of the popular bankruptcy laws.
Comparing Chapter 7 and Chapter 13 Bankruptcy
Sometimes situations arise when you can no longer pay your bills. Although you may have the best intentions of paying off your debt, you simply may not have the means to make this happen. When you can no longer pay your bills, you may need to consider filing bankruptcy. Hopefully you will have considered your alternatives but sometimes bankruptcy is the most viable option. The question then becomes which type of bankruptcy will best suite your financial needs, Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Your current situation will help you to decide which bankruptcy route is best for you.
