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Main difference between a chapter 7 and a chapter 13.


One of the first questions people ask us in our Houston bankruptcy law firm is the following:

What is the difference between a chapter 7 and a chapter 13 bankruptcy?

There are a lot of differences, enough differences to fit into a volume of books, however, this blog entry will focus on the main difference.

Chapter 13 is a payment plan. Chapter 7 is not a payment plan.

In a chapter 13, you pay some, or all creditors, depending on many factors, such as income, expenses, and property.

In a chapter 7, you do not pay back any creditors through the bankruptcy, other than in an asset chapter 7 case, which is not the typical chapter 7, and is not typically through a payment plan either.

To know which bankruptcy would be right for you, please call us to come in for a free consultation with a bankruptcy lawyer. We have two Houston offices


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