Chapter 7 and 13 Bankruptcy - What is the Difference?


Before filing for bankruptcy, its a good idea to know what your getting into.
This article discusses the two main types of bankruptcy available to consumers, chapter 7 and chapter 13.  The Arizona Republic reported that Phoenix AZ bankruptcy rates are up 82% over 2008. Chapter 7 filings account for 81% of this increase and the rest are Chapter 13 filings.
This shows that the most popular consumer bankruptcy filings are chapter 7 and chapter 13. With so many in financial despair and debating whether or not to file for bankruptcy, and if so, which to file under, it is important to know the differences and benefits of each chapter.
Consult with an Arizona bankruptcy lawyer for help to decide which chapter is best and how to proceed.  Chapter 7 bankruptcy is considered a liquidating bankruptcy. Under chapter 7, all non exempt assets will be liquidated by a trustee and, minus his fees, be used to pay creditors.
This can seem undesirable to say the least, but under Arizona’s rather generous exemption laws a debtor can keep most his property. The benefits of chapter 7 are that all non secured debt will be discharged and the debtor will exit the bankruptcy process completely debt free.
Types of non secured debt are credit card debt, medical bills, and unsecured loans. Types of debt that cannot be discharged are student loans, unpaid taxes, and secured loans such as mortgage and car payments.
The chapter 13 is more suitable to someone that has some steady income, as the debt will be paid back over a period of three to five years. This restructured payment plan is submitted by the Arizona bankruptcy lawyer and approved by the courts.
This allows the debtor to retain his properties. Chapter 13 has one very powerful tool called the chapter 13 cram down.
In chapter 13 cram down cases, the code permits the modification of secured debts owed to creditors. It works like this.
If, for example, my car is worth only 5,000 dollars, but I owe 10,000 on it, under the chapter 13 case I will only have to pay what it’s worth, 5,000 dollars. The rest will be discharged, so the debt is “crammed down.” The catch with the cram down is that it can only be used on cars that have been purchased more than two and a half years before filing.
Also the cram down cannot be used on primary residencies. But it can be used on vacation homes, rental properties and most any other type of secured debt.
Source: Free Articles from ArticlesFactory.com .

Top blog stories

A review of Idmobile.com

Idmobile.com offers both pay-as-you-go and contract plans. Pay-as-you-go plans are ideal for customers who don't want to be tied down to a long-term contract, and they can purchase bundles of data, minutes, and texts as and when they need them.

see post

A review of Idmobile.com

Idmobile.com offers both pay-as-you-go and contract plans. Pay-as-you-go plans are ideal for customers who don't want to be tied down to a long-term contract, and they can purchase bundles of data, minutes, and texts as and when they need them.

see post

AO.co: Online Shopping Made Simple

AO.co is a trusted expert in TVs, washing machines, clothes dryers and other household appliances. AO.com is one of the largest retailers in the UK and it specializes in electronics, clothes and home furniture.

see post

For our people.

At Three, we believe phones are good. They just make life better. Easier. And more fun. But we all need to find a balance that works for us. Our mission is to help our customers use their phones to live their best lives.

see post

We make your life easier

We make your life easier Since 1992, we’ve been helping customers get the best deal on their dream phone. We firmly believe in giving you the highest quality, for the lowest price. That’s why we work with three of the UK’s leading networks to do all the haggling for you,...

see post

FOUR BRANDS BECOME ONE. CURRYS.

Currys PLC is a leading omnichannel retailer of technology products and services, operating through 800+ stores and 16 websites in seven countries.

see post

Halfords - Quicker, Easier, and Convenient.

At Halfords, we're all about the journey. With more than 700 stores with over 10,000 colleagues, we're the UK's leading retailer of automotive and cycling products. We are also the leading operator in MOT, tyres, car servicing and car repairs - pleasing more than 750,000 customers every year.

see post

FOUR BRANDS BECOME ONE. CURRYS.

Currys PLC is a leading omnichannel retailer of technology products and services, operating through 800+ stores and 16 websites in seven countries.

see post

Sky - Epic. Endless. Entertainment.

It's important to us that everyone gets great customer service and can enjoy our products, no matter their level of sight. So, if you're blind, partially sighted or struggle to see or read the screen, we’ve a range of features to help you get the most from our products and...

see post

Nasty Gal - We exist for the “girl in progress”.

Look iconic, without the hassle— using Nasty Gal discount codes, you can shop your favorite pieces for way less by simply entering one of our promotional codes (of your choice) at the checkout. From delivery offers, to promo deals, we keep ‘em coming, so you always have the offer you...

see post

Digital Publishing From Past to Now

The Covid-19 has caused the school and universities to shut down around the world creating a major issue in Learning and Education. As this virus spreads through the interaction and if social distanci... The Covid-19 has caused the school and universities to shut down around the world creating a major...

see post

Why it’s Important to Manage Your Holiday Calendars?

A printable calendar 2021 is a prominent online platform where you download printable calendars of your choice. These calendars can be customized as per our client requirement with photo, text, logo, or any other image. If you are thinking of planning a dream vacation tour with family and kids but...

see post

How To Throw The Most Amazing Birthday Party For Your Pet?


Birthdays are very special because they come only once a year, and it’s even more special when it’s the birthday of any of your family member, including your pet. That’s correct; celebrating your pet’s birthday is just as special and exciting, especially if you remember their birth date. And even...

How Should I Start to Train my Dog


This article seeks to give a simple overview of how should i start to train my dog. It differentiates between training a new born puppy and older dogs. With regards to how should I start to train my dog, it depends whether you have gotten a newly born puppy or...

10 Smartest Dogs


All dogs are intelligent and have equal emotional needs and equal anatomy. However few dogs are a notch better than others in the intelligence of understanding commands, adapatability etc. I have collated top 10 dogs who are smartest of all. Does your dog ever flabbergast you by her capacity to...

How are Army Dogs Trained?


Army dog training is different from pet training as these dogs are trained under harsh conditions to do tough jobs. To train an army dog, you need to set the standards high, not just for the dog, but also for yourself as a trainer. This article highlights some of the...

Training Is a Must for Puppies to Reach Their Ultimate Potential


Opting to train your puppy is recommended in order to avoid a variety of issues down the road. There are several details that you should take into account prior to embarking in this type of training with your puppy, so that you can ensure everything goes according to plan.  At...

7 Tips On Camping With Your Dog For The First Time


Camping is not merely about outdoor adventure, but it also enables you to rejuvenating your mind amidst the natural environment. You can boost this experience of yours when you plan this expedition with friends. Camping is not merely about outdoor adventure, but it also enables you to rejuvenate your mind...

List of 7 Most Common Dog Health Issues & Treatments


A canine is a heap of adoration, blessing enveloped by hide. On the off chance that you are a fledgling pet parent or have embraced a puppy since years, the basic medical problems can be an obstacle to your pooch's prosperity is a significant concern. At times, even your canine...

Summer Reassurance for Your Pooch — Nexgard Tasty Chews


Various treatments are available for the prevention of fleas on the dogs and protects them from the flea and tick infestations. Here we will learn in depth about the product Nexgard.   Everyone must have heard of the song Summer of ’69, wow that song must have brought out the memories...

Three Aspect That Changes Dog’s Personality


Different life events and habits tend to influence the personalities of different people. Surprisingly, dog’s personalities tend to change in a similar manner as they age. Although personalities may vary from species to the other, most dogs will become less active and less curious over time. Dogs can change significantly...

Dog's Diet


A well-balanced, nutritious diet is vital in keeping your dog healthy and happy. However, with many available diets, selecting the right diet for your dog can present a significant challenge. Domesticated dogs are primarily carnivores, but they tend to be omnivores in dieting. However, when deciding on what diet to...

Search topic

Dog's Diet

A well-balanced, nutritious diet is vital in keeping your dog healthy and happy. However, with many available diets, selecting the right diet for your dog can present a significant challenge. Domesticated dogs are primarily carnivores, but they tend to be omnivores in dieting. However, when deciding on what diet to...

Learn more