Differences between chapter 7 and chapter 13 bankruptcy

There are two types of bankruptcies for individual debtor: Chapter 7 and chapter 13. Chapter 7 bankruptcy liquidation enables almost all of the debt of consumption, while chapter 13 structured debt plan repayment of the Federal Court system is monitored. Two bankruptcies have their own set of positive and negative aspects. AssetsIn chapter omitted 7 bankruptcy, which were most like home equity and savings accounts to offset the losses of the creditor. However, chapter 13 of the applicant can keep generally, their homes and most assets.TaxesIn Chapter 7 bankruptcy, taxes should be less than 3 years of comprehensive, not included in the case. Chapter 13 filers may include all taxes in your plan.Credit, restructuring the debts EffectsA Chapter 7 bankruptcy on your record remains credit for 10 years, while chapter 13 for reported can while in their compensation plan 7 years.Borrowing PowerChapter 13 filers without the consent of the Court of borrow more money. Chapter 7 registrants are however free to get a loan you want your case is finished.CostsAs 2009, Chapter 7 bankruptcy costs $299 during chapter 13 cases cost $274.