What is the difference between Chapter 13 and Chapter 7?
Chapter 13 is designed to help you stop a foreclosure or repossession (so that you can keep your house and car) and Chapter 7 is not. Chapter 13 gives you the added benefit of stopping a foreclosure and repossession in return for additional responsibility during the case – namely you must be able to service the monthly payment plan established by Chapter 13 and you must commit to the case for three to five years. Chapter 7 neither provides such a benefit nor requires such responsibility, and is therefore relatively short by comparison. Chapter 7 cases only last four to six months and do not require monthly payments to the Court.
