Bankruptcy Chapters 7 & 13, What Is The Difference?
The short answer? Five years and a couple thousand dollars. But that’s not the end of the story. Chapter 7 cases are short (about 90 days from start to finish) and your debts are resolved by a trustee who looks at the things you own, and gives your creditors anything that isn’t protected by one of the state exemptions. Most things you own – your car, your home, clothes, furniture, jewelry, retirement accounts, and your dog (if you have one) are safe – among other things. Luxury items, and sometimes tax refunds, aren’t protected, for the most part, in Colorado.
Chapter 13 involves a repayment to creditors over time, but most cases involve only paying a fraction of the debt (sometimes less than 1%). You can keep all your property, and even refinance things like your car payment or mortgage arrears. Sometimes you can pay off all your debt, and your car, for less than your current car payment.
In either a Chapter 7 or a 13, all of your debt is resolved at the end of the case. Call us and we can help you navigate your options and find the best option for you.
Bankruptcy Chapters 7 & 13, What Is The Difference? Now you know.
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