what is the difference between chapter 7 and chapter 13?
DESCRIPTION
A guide for consumers filing for bankruptcy protection in New York.TRANSCRIPT
![Page 1: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/1.jpg)
WHAT IS THE DIFFERENCE BETWEEN CHAPTER 7 AND
CHAPTER 13?A Guide for Consumers Filing for Bankruptcy Protection
![Page 2: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/2.jpg)
Chapter 7 and Chapter 13
![Page 3: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/3.jpg)
Chapter 7 and Chapter 13 bankruptcy are the most
common types of bankruptcy that consumers file
![Page 4: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/4.jpg)
Both can provide relief from your debts
![Page 5: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/5.jpg)
When you file for Chapter 7 or Chapter 13, collections
activities against you must stop immediately
![Page 6: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/6.jpg)
There are important differences between Chapter 7
and Chapter 13
![Page 7: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/7.jpg)
Chapter 7 Bankruptcy
![Page 8: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/8.jpg)
Chapter 7 is a liquidation bankruptcy
![Page 9: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/9.jpg)
Non-exempt assets are sold in order to pay creditors back money that is
owed
![Page 10: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/10.jpg)
After creditors are repaid from the sale of assets & available
funds, eligible debts are discharged
![Page 11: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/11.jpg)
You do not have to pay them back
![Page 12: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/12.jpg)
Chapter 7 is Means Tested
![Page 13: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/13.jpg)
To file for Chapter 7 bankruptcy protection, you
must make less than the median income in your state for families with
your household size
![Page 14: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/14.jpg)
If you make more than the median, you cannot file
Chapter 7 unless you pass a means test showing you don’t have disposal income
to pay towards your debts
![Page 15: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/15.jpg)
Chapter 13
![Page 16: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/16.jpg)
Chapter 13 is different from Chapter 7 because it does not
require the sale of assets
![Page 17: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/17.jpg)
You can keep all of your possessions in Chapter 13
![Page 18: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/18.jpg)
Chapter 13 requires the creation of a repayment plan
that creditors approve
![Page 19: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/19.jpg)
You must pay back a portion of your debts over 3-5 years
![Page 20: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/20.jpg)
At the end of the payment plan,
the remaining debt balance is discharged
![Page 21: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/21.jpg)
Chapter 13 is Wage Earner’s Bankruptcy
![Page 22: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/22.jpg)
You are not required to pass a means test in order to file for
Chapter 13 bankruptcy
![Page 23: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/23.jpg)
People with an income that is too high for a Chapter 7 filing can get relief from their debts
by filing a Chapter 13
![Page 24: What is the Difference Between Chapter 7 and Chapter 13?](https://reader035.vdocuments.us/reader035/viewer/2022062319/55614d0cd8b42aa20d8b4b6a/html5/thumbnails/24.jpg)
Learn More About Bankruptcy in Long Island