ProPublica logo design, Bankruptcy: What’s the essential difference between Chapter 7 and Chapter 13?

Key differences when considering the chapters make selecting the most appropriate one crucial for success. Utilizing our analysis, we explain the way they work and just how individuals fare under each.

Sept. 27, 2017, 8 a.m. EDT

Series: Too Broke for Bankruptcy

Just Exactly How Bankruptcy Fails People Who Require It Many

The 2 bankruptcy that is main open to individuals inundated by unsecured debt are Chapter 7 or Chapter 13. The choices vary significantly in the way they work additionally the relief they supply. Here are the essential characteristics of every chapter, in addition to data drawn from ProPublica’s analysis of bankruptcy filings from 2008-2015 to exhibit what kinds of debtors are going for each chapter and exactly how effective they’re at having their debts wiped away or discharged. This guide is part of our show on bankruptcy, which takes an in depth, critical go through the system and its own shortcomings.

Have actually You really Cons from you— even if you ultimately decided against it pIf you’ve really thought about filing for bankruptcy, ProPublica wants to hear.

Chapter 7 is a type of liquidation, meaning the debtor’s assets are divvied up among creditors. (mehr …)