Filing of bankruptcy under chapter 7 and chapter 13

When it comes to the idea of filing bankruptcy there are two major forms that come sto the mind of every people and that is chapter 7 bankruptcy and chapter 13 bankruptcy. Chapter 7 bankruptcy can be called as the liquidation bankruptcy or a fresh start bankruptcy.The chapter 7 bankruptcy is so eminent because it dosen’t have any sort of repayment plans like the in chapter 13 bankruptcy.The filing of chapter 13 bankruptcy is like a reorganization of debts to help the owner of the properties to keep their cars, homes and all other valuable assets while handling on debts. By filing chapter 13, you will be able to stop repossession, foreclosure, debt lawsuits and wage garnishment and significantly eliminate the debt on credit cards.

The details of debts under these chapters

Unsecured debts under chapter 7 includes your store charge cards, credit cards, gas credit cards, personal loans,payday loans, deficiencies and judgements from repossessed assets, cell phone bills, utility bills and medical bills. The following are the basic aspects of bankruptcy under chapter 13. They for people who have fallen shot on their bills but have a regular income, filing under bankruptcy chapter 13 may allow the time gap they need to get back in the track with their payments and without any harm to their property.

The time period for the process of chapters 7 and 13

Right from the beginning till the end the entire process of chapter 7 bankruptcy takes about 3 to 6 months. When the bankruptcy is being filed the laws of it does not allow the trustee to seize any of the assets and auction it to cover the debts. The first thing one ought to do to file a bankruptcy under chapter 13 is to file a petition on it. Then the courts will automatic a stay on the creditors from taking any further action on collection of debts.