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What is the difference between Chapter 7 and Chapter 13 bankruptcy, as they relate to benefits?

April 26, 2017Bankruptcy Benefits Chapter 13 chapter 7 difference relate

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What is the difference between Chapter 7 and Chapter 13 bankruptcy, as they relate to benefits?

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Chapter 7 bankruptcy consists of liquidating non-exempt assets to repay debts, while Chapter 13 bankruptcy involves setting up a plan to pay off debts, in whole or in part, within a three to five year period. Often, individuals will file Chapter 13 bankruptcy to avoid Chapter 7 bankruptcy.