The Differences between Ch. 7 and Ch. 13 Bankruptcy
When filing for bankruptcy, debtors have a range of different options to choose from, depending on their circumstances. Generally speaking, Chapter 7 and Chapter 13 bankruptcy are those most commonly pursued by individuals in the U.S. However, there are important differences between these two types of bankruptcy that can substantially impact a debtor’s future life.
Pursuing bankruptcy is an important decision, one which should not be made lightly. That’s why the assistance of an experienced attorney can prove enormously beneficial in helping to ensure that your rights and interests are fully protected throughout the bankruptcy process. At the law offices of Ryan J. Ruehle, LLC, we can help you to fully understand your legal options and determine what the best course of action for you and your family may be.
Chapter 7 vs. Chapter 13 Bankruptcy
The two main bankruptcy programs for individual debtors in the U.S. differ in important ways, including:
- Asset liquidation – Under Chapter 7, some assets may be liquidated to help repay creditors. No asset liquidation takes place under Chapter 13.
- Means testing – In order to qualify for Chapter 7 bankruptcy, the debtor must pass what is known as a means test. Similar financial eligibility requirements do not restrict access to Chapter 13 bankruptcy.
- Debt repayment – Under Chapter 7, creditors may be repaid through the partial liquidation of debtor assets. Under Chapter 13, debtors create a repayment plan and work to pay off their debts in a more manageable manner.
These are just some of the key differences between Chapter 7 and Chapter 13 bankruptcy.
Contact a Bankruptcy Lawyer in Cincinnati
If you are considering filing for bankruptcy, we can help you to fully understand your options and come up with a plan for how to proceed. At the law offices of Ryan J. Ruehle, LLC, we are committed to helping clients regardless of their financial situation. Contact us today at (513) 621-0999 to learn more about what we can do for you.