Find out how Chapter 7 and Chapter 13 bankruptcy work, eligibility requirements, how to pick the best option for you and how to apply.
Wondering if you should file Chapter 7 or Chapter 13 bankruptcy? The best option for you can depend on your income and other factors.
Liquidation, Bankruptcy ; Company finally wound up., Company unable to pay debts further. ; Reason is financial instability or other reasons., Reason is insolvency. ; Compulsory/voluntary mode., Voluntary/involuntary.
Chapter 7 & 13 bankruptcy each offer different benefits to filers. Check out our handy table listing the differences between Chapter 7 & Chapter 13 bankruptcy.
The United States Bankruptcy Code has different ways and outcomes, when filing for bankruptcy protection. Learn the differences between Chapter 7 and Chapter 11.
More answers ; Discharge indicates that the Chapter 13 terms have been fulfilled as agreed. Dismissal means the bankruptcy was dismissed because the terms were not being met or other factors. When a BK is dismissed the debtor is no longer under the protection of BK law and creditors can resume debt collection proceedings such as lawsuits, garnishments, and so forth. Discharged indicates the bankruptcy has been found valid and the debts that were allowed to be included in the BK have been expunged, (discharged ...
, Chapter 11 ; Characterization of Proceeding, In a Chapter 11 proceeding, the U.S. court has authority over all assets of the debtor and the debtor’s estate. The U.S. court supervises and approves the outcome of the debtor’s debt adjustment plan. ; Commencing a Case, A petition is filed commencing the Chapter 11 case, along with supporting “first day motions” seeking relief for a wide range of administrative and operational issues ( ; Bankruptcy Estate & Operations, The debtor has broad authority to manage its assets in the ordinary course. Outside of the ordinary course activities must receive bankruptcy court approval.
Key differences between the chapters make choosing the right one critical for success. Using our analysis, we explain how they work and how people fare under each.
(Chapter 7 bankruptcy) or work with you to restructure your assets and debts (Chapter 13 bankruptcy). But those aren't the only differences between these two debt relief options. Other...
Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit score services to help you make smart decisions with your money. Even those who bring in a respectable income may find themselves underwater. If someone is having difficulty keeping up with monthly bills, bankruptcy can provide a fresh start. It can even provide a way for those facing foreclosure to ...