How does a Chapter 13 case differ from a Chapter 7 case?
In Chapter 7 cases, a Debtor’s nonexempt property, if any, is sold by the Trustee for the payment of the Debtor’s creditors. In Chapter 13, a Debtor generally keeps all of his property while committing a portion of hisfuture income to the repayment of as much of the Debtor’s debts as is possible. Most Chapter 7 cases do not involve the Debtor giving up any property. Generally, a Debtor’s exemptions are sufficient to cover all of the Debtor’s assets. A Chapter 13 discharge is slightly broader than a Chapter 7 discharge and releases the Debtor from liability for a few types of debts that are not dischargeable under Chapter 7. A Chapter 13 case normally lasts much longer than a Chapter 7 case and is usually more expensive for the Debtor.
The basic difference between a Chapter 7 case and a Chapter 13 case is that in a Chapter 7 case the debtor’s nonexempt property (if any exists) is liquidated to pay as much as possible of the debtor’s debts, while in Chapter 13 cases a portion of the debtor’s future income is used to pay as much of the debtor’s debts as is feasible under the debtor’s circumstances. As a practical matter, in a Chapter 7 case the debtor loses all or most of his or her nonexempt property and receives a Chapter 7 discharge, which releases the debtor from liability for most debts. In a Chapter 13 case, the debtor usually retains his or her nonexempt property, but must pay off as much of his or her debts as the court deems feasible and receives a Chapter 13 discharge, which is slightly broader than a Chapter 7 discharge and releases the debtor from liability for a few types of debts that are not dischargeable under Chapter 7.
The basic difference between a chapter 7 case and a chapter 13 case is that in a chapter 7 case the debtor’s nonexempt property (if any exists) is liquidated to pay as much as possible of the debtor’s debts, while in chapter 13 cases a portion of the debtor’s future income is used to pay as much of the debtor’s debts as is feasible under the debtor’s circumstances. As a practical matter, in a chapter 7 case the debtor loses all or most of his or her nonexempt property and receives a chapter 7 discharge, which releases the debtor from liability for most debts. In a chapter 13 case, the debtor usually retains his or her nonexempt property, but must pay off as much of his or her debts as the court deems feasible and receives a chapter 13discharge, which is slightly broader than a chapter 7 discharge and releases the debtor from liability for a few types of debts that are not dischargeable under chapter 7.
In Chapter 7 cases, a Debtor’s nonexempt property, if any, is sold by the Trustee for the payment of the Debtor’s creditors. In Chapter 13, a Debtor generally keeps all of his property while committing a portion of his future incometo the repayment of as much of the Debtor’s debts as is possible. Most Chapter 7 cases do not involve the Debtor giving up any property. Generally, a Debtor’s exemptions are sufficient to cover all of the Debtor’s assets. A Chapter 13 discharge is slightly broader than a Chapter 7 discharge and releases the Debtor from liability for a few types of debts that are not dischargeable under Chapter 7. A Chapter 13 case normally lasts much longer than a Chapter 7 case and is usually more expensive for the Debtor.
