{"id":1223,"date":"2019-12-07T12:01:39","date_gmt":"2019-12-07T18:01:39","guid":{"rendered":"http:\/\/www.mankatobankruptcy.com\/blog\/?p=1223"},"modified":"2019-12-03T12:13:42","modified_gmt":"2019-12-03T18:13:42","slug":"differences-between-chapter-7-13","status":"publish","type":"post","link":"https:\/\/www.mankatobankruptcy.com\/blog\/differences-between-chapter-7-13\/","title":{"rendered":"Overview of the Basic Differences between Chapter 7 and Chapter 13 Bankruptcy"},"content":{"rendered":"\n<p>In the United States, there are two main types of bankruptcy available to individuals and businesses alike: Chapter 7 and Chapter 13. While both types provide government-administered debt relief, the two chapters work very differently. Both are valuable options for debtors, and the more suitable one depends on the financial and personal circumstances of any given filer. If you are considering bankruptcy but don\u2019t know where to start, Behm Law Group Ltd. can help. We can work with you to determine which chapter is right for you, and we can guide and protect you throughout your case. Filing for bankruptcy in <a href=\"\/areas-stpeter.php\">St. Peter, MN<\/a>, isn\u2019t the impossible process it might seem to be, and our expert attorneys can help you see that every step of the way. <\/p>\n\n\n\n<p>The main differences between Chapter 7\nand Chapter 13 lie in how the debts are handled and how long the cases take. <\/p>\n\n\n\n<p><strong>Debt Handling<\/strong><\/p>\n\n\n\n<ul><li><strong>Chapter 7 is a liquidation process.<\/strong> This means your non-exempt\nassets\/properties are liquidated\/sold, and the amount realized from that sale\nis given to your creditors. This payment to your creditors allows any debts\ntied to those sold properties to be discharged. Your unsecured debts, such as\ncredit card or medical debt, will also be discharged in the Chapter 7 process. <\/li><li><strong>Chapter 13 is a reorganization process<\/strong>. This means that you will take your\ndebts and reorganize them into a repayment plan customized to your income. The\nrepayment plan requires one lump monthly payment until your plan is complete.\nYou may be able to repay your secured debts in full under different terms, but\nyour unsecured debts will be fully discharged after your chapter 13 plan has\nconcluded. <\/li><\/ul>\n\n\n\n<p><strong>Time<\/strong><\/p>\n\n\n\n<ul><li><strong>Chapter 7 takes between three to four months to complete.<\/strong> The time period varies depending on how quickly you complete the <a href=\"\/blog\/details-on-the-credit-counseling-requirement-for-bankruptcy-in-marshall-mn\/\">pre-bankruptcy credit counseling<\/a> and other requirements, how long it takes your trustee to liquidate any non-exempt assets, and whether there are any judgment claims in your case that need to be expunged.\u00a0 <\/li><li><strong>Chapter 13 takes three to five years to complete<\/strong>. Your <a href=\"\/blog\/chapter-13-bankruptcy-windom-mn\/\">repayment plan<\/a> will either be a three-year or a five-year period. If your income is lower than the state median of a similar household, it will be a three-year plan. If it\u2019s higher, then your plan will be five years. <\/li><\/ul>\n\n\n\n<p>There are other differences between\nChapter 7 and Chapter 13 as both are nuanced processes that vary case by case.\nAnother major difference, for example, is that you can only qualify for Chapter\n7 if you pass the state Means Test. This test measures your income-to-debt\nratio. You\u2019ll only be eligible for Chapter 7 if that ratio is lower than the\nstate median of a similar household. <\/p>\n\n\n\n<p>To learn more about the differences between the two chapters or to begin filing for bankruptcy in St. Peter, MN, contact Behm Law Group Ltd. at <a href=\"tel:507-387-7200\">(507) 387-7200<\/a> or via email at <a href=\"mailto:stephen@mankatobankruptcy.com\">stephen@mankatobankruptcy.com<\/a> today. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the United States, there are two main types of bankruptcy available to individuals and businesses alike: Chapter 7 and Chapter 13. While both types provide government-administered debt relief, the two chapters work very differently. Both are valuable options for debtors, and the more suitable one depends on the financial and personal circumstances of any [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"aioseo_notices":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v19.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Basic Differences between Chapter 7 &amp; 13 Bankruptcy | Behm Law<\/title>\n<meta name=\"description\" content=\"Learn the basic differences between Chapter 7 bankruptcy and Chapter 13 bankruptcy with Behm Law Group. 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