How is Chapter 13 different from Chapter 7 from the point of view of the debtor?
The essential difference between Chapter 7 and Chapter 13 is in the handling of the debtors property. In a Chapter 7 case, all nonexempt property owned by the debtor is sold, and the proceeds are used to pay as many of the debtors debts as possible. In Chapter 13 cases, a debtors income is applied towards payment of as many of the debtors debts as possible. A Chapter 13 debtor typically retains more of his or her nonexempt property. In addition, the discharge issued in a Chapter 13 case is usually broader than a Chapter 7 discharge, and will relieve the debtor of liability for several types of debts that are not discharged by a Chapter 7 case.
The essential difference between Chapter 7 and Chapter 13 is in the handling of the debtor’s property. In a Chapter 7 case, all non-exempt property owned by the debtor is sold, and the proceeds used to pay as many of the debtor’s debts as possible. In Chapter 13 cases, a debtor’s income is applied towards payment of as many of the debtor’s debts as possible. A Chapter 13 debtor typically retains more of his or her non-exempt property. Also, the discharge issued in a Chapter 13 case usually is broader than a Chapter 7 discharge, and will relieve the debtor of liability for several types of debts that are not discharged by a Chapter 7 case.
The essential difference between Chapter 7 and Chapter 13 is in the handling of the debtor’s property. In a Chapter 7 case, all nonexempt property owned by the debtor is sold, and the proceeds are used to pay as many of the debtor’s debts as possible. In Chapter 13 cases, a debtor’s income is applied towards payment of as many of the debtor’s debts as possible. A Chapter 13 debtor typically retains more of his or her nonexempt property. In addition, the discharge issued in a Chapter 13 case is usually broader than a Chapter 7 discharge, and will relieve the debtor of liability for several types of debts that are not discharged by a Chapter 7 case.
The essential difference between Chapter 7 and Chapter 13 is in the handling of the debtors property. In a Chapter 7 case, all nonexempt property owned by the debtor is sold, and the proceeds are used to pay as many of the debtors debts as possible. In Chapter 13 cases, a debtors income is applied towards payment of as many of the debtors debts as possible. A Chapter 13 debtor typically retains more of his or her nonexempt property. In addition, the discharge issued in a Chapter 13 case is usually broader than a Chapter 7 discharge, and will relieve the debtor of liability for several types of debts that are not discharged by a Chapter 7 case.
