The difference between chapter 13 and chapter 7
- sandra919
- Apr 12, 2021
- 2 min read
Title 11 of the United States Code is known as the Bankruptcy Code. In the Bankruptcy Code, there are two main chapters designed for personal bankruptcies. These are chapter 7 and chapter 13. The following are some of the differences between chapter 13 and chapter 7.
1. Filing Fees - The filing fees for a chapter 13 are $313.00, the filing fees for a chapter 7 are $338.00.
2. Payment Plan - A chapter 13 is a payment plan where you make monthly payments, a chapter 7 is not a payment plan, you do not make monthly payments in a chapter 7.
3. Length - A chapter 13 lasts from 3 to 5 years. A chapter 7 from 4 to 6 months.
4. Assets - Unexempt assets can be protected in a chapter 13, but not in a chapter 7.
5. Qualification - To file a chapter 13 you do not need to qualify based on income, but to file a chapter 7 you need to qualify.
6. Catch up on past due mortgage or car or other payments - In a chapter 13, you can pay past due payments for your mortgage or car or other debts, in a chapter 7, there is no payment plan so you cannot make up past payments.
7. Credit report - It is better for your credit to file a chapter 13 than it is to file a chapter 7 for many reasons, including the fact that you had paid back some of your creditors.
8. Attorneys' fees - Attorney's fees are usually a low down payment to file a chapter 13, but with a chapter 7 they are a larger up front full payment.
For more information on bankruptcy in Houston, contact the Rashid Law Firm at 832-209-8833 for a free consultation at our Gulf Freeway location.

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