Disclaimer: This post does not constitute Legal Advice or establish any attorney/client relationship.
First, I am a Bankruptcy Attorney in Rockford, IL. The information I am supplying will apply to primarily Bankruptcy situations in the local area I practice. I am not the only Bankruptcy Lawyer in Rockford, IL so feel free to double check my information with any other practicing attorney or attorneys.
Chapter 7 Bankruptcy
A chapter 7 Bankruptcy is called a liquidation bankruptcy, meaning there will be a Trustee assigned to your case who will determine if you have any unprotected assets she/he could liquidate to pay off your debt. 99% of the time there are no assets for the Trustee to sell, so the creditors get nothing. The Chapter 7 would take care of most of your debt. The types of Debt that would not be included would be: certain tax debt, owed child support or maintenance, criminal fines, student loan debt, certain traffic violations.
Chapter 13
A chapter 13 Bankruptcy is called a "Wage-Earner's Bankruptcy". In a chapter 13 Bankruptcy you would make payments based on your income and expenses. Generally chapter 13 Bankruptcies last from anywhere between 3-5 years. A chapter 13 Bankruptcy will take care of Parking Tickets or Toll Way Fines, whereas a chapter 7 Bankruptcy would not.
There are advantages to both bankruptcies. In a chapter 7 Bankruptcy you are done relatively quickly. Additionally it is a lot cheaper in the long run than a chapter 13 bankruptcy. You can generally begin rebuilding your credit a lot faster if you do a chapter 7 bankruptcy. However, a chapter 7 bankruptcy will stay on your credit report longer than a chapter 13. A chapter 7 bankruptcy will stay on your credit report for 10 years, whereas a chapter 13 bankruptcy will remain on your credit report for 7 years. Additionally, lenders who are aware of the difference between a chapter 7 bankruptcy and a chapter 13 bankruptcy favor chapter 13 bankruptcy. Some may give you loans at more favorable rates if they see a Chapter 13 Bankruptcy instead of a chapter 7 Bankruptcy. The reason for this is that in a chapter 13 bankruptcy, you will pay back a portion of your debt, and you are on a payment plan.
If you have any questions feel free to comment below, or send us a message on our Facebook page: https://www.facebook.com/rockfordbankruptcylawyers
First, I am a Bankruptcy Attorney in Rockford, IL. The information I am supplying will apply to primarily Bankruptcy situations in the local area I practice. I am not the only Bankruptcy Lawyer in Rockford, IL so feel free to double check my information with any other practicing attorney or attorneys.
Chapter 7 Bankruptcy
A chapter 7 Bankruptcy is called a liquidation bankruptcy, meaning there will be a Trustee assigned to your case who will determine if you have any unprotected assets she/he could liquidate to pay off your debt. 99% of the time there are no assets for the Trustee to sell, so the creditors get nothing. The Chapter 7 would take care of most of your debt. The types of Debt that would not be included would be: certain tax debt, owed child support or maintenance, criminal fines, student loan debt, certain traffic violations.
Chapter 13
A chapter 13 Bankruptcy is called a "Wage-Earner's Bankruptcy". In a chapter 13 Bankruptcy you would make payments based on your income and expenses. Generally chapter 13 Bankruptcies last from anywhere between 3-5 years. A chapter 13 Bankruptcy will take care of Parking Tickets or Toll Way Fines, whereas a chapter 7 Bankruptcy would not.
There are advantages to both bankruptcies. In a chapter 7 Bankruptcy you are done relatively quickly. Additionally it is a lot cheaper in the long run than a chapter 13 bankruptcy. You can generally begin rebuilding your credit a lot faster if you do a chapter 7 bankruptcy. However, a chapter 7 bankruptcy will stay on your credit report longer than a chapter 13. A chapter 7 bankruptcy will stay on your credit report for 10 years, whereas a chapter 13 bankruptcy will remain on your credit report for 7 years. Additionally, lenders who are aware of the difference between a chapter 7 bankruptcy and a chapter 13 bankruptcy favor chapter 13 bankruptcy. Some may give you loans at more favorable rates if they see a Chapter 13 Bankruptcy instead of a chapter 7 Bankruptcy. The reason for this is that in a chapter 13 bankruptcy, you will pay back a portion of your debt, and you are on a payment plan.
If you have any questions feel free to comment below, or send us a message on our Facebook page: https://www.facebook.com/rockfordbankruptcylawyers
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