Chapter 7 versus Chapter 13 Bankruptcy

Orlando Bankruptcy Attorney | Chapter 7 vs. Chapter 13 Bankruptcy: Which is best for you?

Orlando Chapter 7 vs. Chapter 13 Bankruptcy Overview:

• Chapter 7 vs 13 Bankruptcy: What’s the difference?
• Chapter 7 Bankruptcy Process
• Chapter 13 Bankruptcy Process

Difference between Orlando Chapter 7 and Chapter 13 Bankruptcy Details:

Chapter 7 vs. Chapter 13 Bankruptcy: What’s the difference?

The biggest difference between the Chapter 7 and Chapter 13 Bankruptcy is the repayment of your debt. Of the two, Chapter 7 is the most severe and takes about four to six months to complete. It is a liquidation plan where most of your assets are sold off to repay lenders and creditors. Chapter 7 bankruptcy filing will stay on an individual's credit report for 10 years from the filing date. Chapter 13 Bankruptcy does not require you to liquidate your assets. This may be the right choice for you if you have a regular income, because it provides a means to repay your debts over time. Chapter 13 is frequently the choice of homeowners who are seeking to avoid foreclosure. The repayment plan takes approximately three to five years but will also stay on your record for seven years.

Chapter 7 Bankruptcy Process
The filing of a Chapter 7 Bankruptcy process in Orlando is very much a partnership between you and your lawyer. Working together, you’ll put together information about your income, assets and debt.  You’ll identify your sources of income, review expenses, and work through any issues that could be a problem in your case. There is a stack of forms that need to be completed for your Chapter 7 bankruptcy case.  In fact, a complete file will take up between 50 and 60 pages of information.  Before your Chapter 7 bankruptcy is filed you’ll need to go through a credit counseling certification process with a court-approved provider.  It takes about 20 minutes to complete. Once the case is filed, you are assigned a case number. About one month after filing Chapter 7 Bankruptcy you are to attend a meeting with your creditors. The entire meeting takes about 10 minutes and is comprised of questions that are written down in a handbook.

Chapter 13 Bankruptcy Process
In the filing of a Chapter 13 Bankruptcy process in Orlando the person filing the case (Debtor) files a payment plan at the beginning of the case. After these are ready, the bankruptcy petition and payment plan are submitted to the U.S. Bankruptcy Court. The papers are filed and the case gets a number. Like a Chapter 7 bankruptcy, you must go under oath with penalty of perjury regarding the facts that are contained in your bankruptcy petition. You will need to appear in bankruptcy court to answer some brief questions. This is the 341(a) Meeting of Creditors. After the bankruptcy court date, your attorney will need to return to court. This involves making sure that the numbers all add up, your chapter 13 payment plan is fair to both you and your creditors, and of course, to accept your next monthly payment. If all goes right, your plan will be "confirmed," your plan is accepted.

To learn more about how filing for Chapter 7 or a Chapter 13 Bankruptcy and how it will affect your life and your finances, call our Winter Park, Orlando office at BAKER LAW, PL. We have helped thousands of people and can help you too. You don't have to face debt problems alone.




BAKER LAW, PL serves the Central Florida and seven-county Orlando area, including the cities of Sanford, Lakeland, Lady Lake, Kissimmee, Maitland, Lake Mary, Oviedo, Winter Garden, Winter Park, Windermere, Lake Nona, Apopka, Mount Dora, Winter Springs, Longwood, Orlando, North Orlando, South Orlando, East Orlando, West Orlando, Melbourne, Titusville, Cape Canaveral, Daytona Beach and New Smyrna Beach, and the counties of Orange, Seminole, Lake, Polk, Brevard, Volusia and Osceola.