Selecting the right type of bankruptcy depends on the options you have. To understand your options better, consult a Bankruptcy Attorney Tampa FL. to understand the difference between the two read the comparison below.
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Who Can File:
If you have little or no disposable income, you are liable to file for chapter 7 bankruptcy. To prove this fact, you will have to go through and pass a means test.
Whereas,
Chapter 13 is filed when the filer owns a property, and when he or she doesn’t want to lose it in the process of paying off their creditors.
Basics of the Petition:
Comparatively, If your existing monthly income is to any degree, higher than the state’s median income for a family same as yours, you will not be legible for chapter 7 bankruptcy.
Whereas,
If you have sufficient income, you will be liable to file chapter 13 bankruptcy petitions. Consulting a bankruptcy lawyers Tampa can help you understand the basics and help to file the right chapter.
Chapter 7 Takes The Load Off Your Shoulders:
In a situation where you can’t, in any way, pay off your debtors, filing Chapter 7 bankruptcy can help you end this problem. Under chapter 7 bankruptcy petition, the court can order your creditors to:
Stop asking you for money
Contacting you in any way
Filing or persisting already registered lawsuits against you.
Whereas:
Chapter 13 Helps You Pay Off Your Debts in An Easy Way:
With chapter 13, things are a bit different as it provides you with a better way to pay off your debt in a relaxed and cost-effective way. Chapter 13 petitions give you a plan to either pay off your debt entirely or partly through monthly payments over a decided period of time.
Chapter 7 Takes Less Time:
The benefit of filing chapter 7 bankruptcy your case will be concluded in 90 to 100 days from start to end. Moreover, you will also get to undergo a credit counseling course before filing.
Whereas:
Chapter 13 May Take Time:
Compared to Chapter7 bankruptcy, Chapter 13 can take three to five years to pay off your debt partly or entirely. All the same Chapter 13 bankruptcy Tampa can help you understand your options better.
Impact Of Chapter 7 On Your Credit:
There are drawbacks to everything; Chapter 7 bankruptcy is no different. Filing and concluding Chapter 7 bankruptcy will become a permanent mark on your credit report for ten solid years. This means that you will have to pay more in interest rates as well as fees when borrowing against the mortgage.
Whereas,
Impact Of Chapter 13 On Your Credit History:
Just like Chapter 7, there are consequences to Chapter 13 bankruptcy as well, but unlike Chapter 7 bankruptcy, they aren’t that severe. A successfully completed Chapter 13 bankruptcy will permanently mark your credit report for seven years from your filing date. However, there is a catch; almost all creditors prefer seeing Chapter 13 bankruptcy than Chapter 7 on credit reports as it’s a clear indication of the fact that you have repaid your debts.
If the difference didn’t help you enough, consult Bankruptcy Attorney.
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