Chapter 7

Chapter 13

1) Within ninety days of filing most of the unsecured loans are written off.

1) On the other hand, chap 13 is a repayment plan: You set up a three or five year schedule with your creditors.

2)  For ten years the bankruptcy will stay on your credit report.

2) Chapter 13 bankruptcy remains on your credit report for seven years.

3) You’ll have to sell some of your properties and distribute the proceeds to your creditors. Which means you may lose your home ( if you own it ) and also expensive items such as art and jewelry, and costly consumer electronics.  

3) Including your home you get to keep all of your property, with this type of bankruptcy.

4) If you have no valuable assets to lose, like a house or a car or after paying your basic monthly expenses you have no money left to pay off your debts, then also you might be a candidate of Chapter 7. It wipes the slate clean, but you’d most likely lose any valuable possessions.

4) It is for the debtors who’ve fallen behind on their payments for a temporary problem e.g. a job loss. However they can get back on track if given time to catch up.If you have a steady income then also you can file chapter 13 if you find difficult to make both ends meet.