BK difference

Chapter 7 is a discharge of all dischargable debts. You have to meet income restrictions.

Chapter 13 is a wage earner plan....you make monthly payments to the court trustee for 3-5 years and pay back a portion to all of the debt.

Thanks but what do you mean by discharge of all dischargable debts. Can you make it simpler for me

With the help of a bankruptcy discharge, the debtor is released from any personal liability for paying certain debts. Thus, the debtor is not required to pay any debts which are discharged. It is a permanent order that prohibits the creditors from taking any form of collection action on discharged debts. Mortgage debt, credit card debts, medical and other unsecured debts are discharged under Chapter 7 bankruptcy filing.

There are certain debts which are not discharged in bankruptcy filing and the debtor needs to pay them. These include: Student loans, Taxes, criminal fines, fraudulent debts, child support and alimony, etc.

To know more about Chapter 7 and Chapter 13 bankruptcy, check out the following page:

http://www.debtconsolidationcare.com/chapter-13-bankruptcy.html
http://www.debtconsolidationcare.com/chapter-7-bankruptcy.html