Chapter 7 vs Chapter 13 Bankruptcy Which Is Right for You

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Chapter 7 vs Chapter 13 bankruptcy

Chapter 7 vs Chapter 13 bankruptcy is a common comparison for anyone considering filing for bankruptcy. You may not be sure which category of bankruptcy you fall into or which type would be best for your situation. There are two primary types of bankruptcy, each designed for individuals based on their income and amount of debt.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy is designed for individuals who are overwhelmed with a large amount of debt but do not have significant assets that can be sold to help pay for the debt, or do not need protection from creditors during the bankruptcy process. During the liquidation process, any assets the individual does have will be sold to provide funding to the creditors for repayment of debts. Liquidation is typically faster than in cases where the individual has large assets that they have difficulty parting with.

Chapter 13 bankruptcy

Chapter 13 bankruptcy is intended for individuals who are struggling with debt but do not wish to sell their valuable assets in order to repay their creditors. Instead of requiring the liquidation of assets to repay creditors as in Chapter 7, Chapter 13 bankruptcy involves a creditor repayment plan. This allows the individual to repay their creditors over a period of time without interest, usually three to five years. After the debts have been paid in full, the individual is released from financial responsibility.

When comparing Chapter 7 vs Chapter 13 bankruptcy, it’s important to consider your financial goals, the types of assets you own, and your ability to repay debts over time. Deciding which type of bankruptcy to file can be a difficult process, but consulting with a qualified bankruptcy attorney can help you make the right choice for your unique situation.

Call The Law Office of Stewart Lim to schedule a consultation today and get expert guidance on Chapter 7 vs Chapter 13 bankruptcy for your financial future.

Our Client Testimonials

Law Offices of Stewart Lim & Associates

5.0

Based on 48 reviews

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alfredperales@gmail.com Perales

00:28 02 Oct 20

Stewart was great at getting my bankruptcy done FAST! He made the whole process as streamlined and easy as possible. He was great about explaining everything and answering questions as they came up. Definitely very patient, friendly, and easy to work with.

Jennifer Paredes

18:28 01 Oct 20

I was thoroughly impressed by Stewart's ability to quickly handle my parents' bankruptcy through the pandemic. He had EVERYTHING in place for them to virtually review and sign all of the documents, and was phenomenal when it came to helping my computer illiterate parents navigate technology. He was so patient walking them through it all.

Debra Perales

18:24 01 Oct 20

Stewart helped my husband and me with our bankruptcy. Not only was he very affordable, but his service was top notch! He was great about explaining the process, answering any questions we had, and getting everything done very quickly. I've never dealt with such a personable and upfront attorney.

P C

16:49 27 Jul 20

Stewart Lim was very helpful throughout the whole bankruptcy process from start to finish. I shopped around for attorneys but all of the ones I spoke to seemed too corporate. When I spoke to Stewart for the first time he was very down to earth. He was always accessible whether it was thru call, text, or email. Answering all questions I had even questions that did not pertain to my bankruptcy case breaking down everything into terms that I could actually understand. He made my situation seem very manageable and easygoing. Stewart Lim was an easy choice for me and worked out well.

J Camacho

18:53 17 Jul 20

Stewart Lim is the very best attorney you can have on your side. Thank you for all your help!

phadony sary

00:33 16 Jul 20

I'm very fortunate that I found the right attorney. I would definitely recommend Mr. Stewart Lim to any of my friends or family. He's helped me so much with my bankruptcy case. Now I'm debt free.

M B

23:20 23 Jun 20

Stewart Lim is extremely knowledgeable and was able to communicate effectively with me. He is very competent, capable and caring. The follow through was excellent, timely and informative. Everything I could have asked for and more. I highly recommend Stewart Lim to anyone!

Response from the owner 00:22 24 Jun 20

Thank you for your review Marlene.

S M

01:30 05 Sep 19

From start to finish I was given excellent counsel. I started the arduous task of having to file for bankruptcy in May 2019. Mr. Lim was always available to answer any questions I had to streamline the process. In less than 3 months I had my court date and have been relieved of the stress of my debt. Thank you Mr. Lim I would definitely recommend your services to family and friends if they are faced with the tough decision of bankruptcy

Sombo Chet

01:28 31 Aug 19

C H

06:27 12 Oct 18

Stewart Lim was very helpful in assisting me throughout the entire bankruptcy process. He was timely, informative, and detailed. All of my questions were addressed and each step was clearly explained. Every part of this process was seemless for me thanks to Mr. Lim. I highly recommend Mr. Lim if you need help in this area.