When people find themselves in need of debt relief, they frequently want to know what the difference is between Chapter 7 bankruptcy and Chapter 13 bankruptcy options.
There are times when debt settlement is a better option and there are times when bankruptcy can be your friend.
A Chapter 7 bankruptcy often takes 3 or 4 months to finish, while a Chapter 13 bankruptcy requires at least a minimal payment to the Chapter 13 Trustee over 3 to 5 years. A Chapter 13 bankruptcy will usually halt a pending foreclosure sale, but a Chapter 7 bankruptcy will not prevent a foreclosure sale. In a Chapter 13 bankruptcy assets cannot be taken from you no matter how much equity you have, although in a Chapter 7 bankruptcy, you are limited by how much equity you can have in assets you own and still keep them. Regardless of how much income you have, you may file a Chapter 13 bankruptcy. People in the top half in terms of income, however, may have too much income to qualify for debt relief under Chapter 7 bankruptcy.
The bankruptcy laws in the State of Missouri and around the St. Louis area can be different than in other states, but here's a quick video that should provide some clarification.
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