What's the difference between Chapter 7 bankruptcy vs. Chapter 13 bankruptcy ?
If you’re considering filing for bankruptcy in Tampa, FL, it’s important to understand the differences between the two most common types of bankruptcy: Chapter 7 and Chapter 13. In this article, we’ll break down the key differences between these two types of bankruptcy and help you determine which one may be the best fit for your specific situation. Chapter 7 Bankruptcy Chapter 7 bankruptcy, also known as “liquidation” bankruptcy, is the most common type of bankruptcy in the United States. It’s designed to help individuals and businesses that are unable to pay their debts and need a fresh start. In a Chapter 7 bankruptcy, a debtor’s assets are sold (with some exceptions) to pay off creditors. After the assets are sold, any remaining debt is discharged, meaning the debtor is no longer responsible for paying it. Chapter 13 Bankruptcy Chapter 13 bankruptcy, also known as a “reorganisation” bankruptcy, is designed for individuals with a regular income who are facing financial difficulties ...