the bankruptcy process to declare. There are usually two options. The YouTube clip “Chapter 7 vs. Chapter 13 Bankruptcy Comparison” shows the critical differences between these choices to help you take a shrewd decision. We’ll discuss the differences!
Chapter 13 bankruptcy can be classified as a repayment type of filing. This is also referred to as consolidating or wage earners repayment bankruptcy case. The procedure can take between three to five years. You need to be aware of first. A judge will scrutinize your median earnings, or the amount you earned in during the period of six months before filing both claims. It will allow you to apply for chapter 13 as well as Chapter 7. with this information.
The court also looks at your disposable income which consists of your remaining cash after having paid other bills and basic needs. These funds go to your creditors. In the example above, if you are owed $1,000 at the close of the month, this amount becomes your repayment program based on your Chapter 13 case. Many people choose to file an Chapter 7 case because the payment plan could be expensive.
You can check the rest of the video for further information on the differentiators between these cases. z7kmw26n9g.