Many people ask what the difference between a Chapter 7 Bankruptcy and a Chapter 13 Bankruptcy are everyday as there is confusion between the two different types of bankruptcy. How do the new bankruptcy laws effect which type of bankruptcy that you are permitted to file? What is the difference between a Chapter 7 and a Chapter 13 Bankruptcy? All of these questions and more will be answered if you read throughout this page. A Chapter 7 Bankruptcy is simply a bankruptcy were you are wiping away all of your in exchange for your non-exempt property. A Chapter 13 Bankruptcy is when you set up a repayment plan with the trustee that is acceptable to yourself, the courts and the creditors and you do not have surrender any of your property. The repayment plan on a Chapter 13 Bankruptcy is normally 30-60 months.The federal government passed a law recently that makes it hard for just anyone to file a chapter 7. To file a chapter 7 you will have to pass a bankruptcy means test to qualify for a chapter 7. If you do not qualify for a chapter 7 you will have to file a chapter 13. If however you are a Wisconsin resident you may file a chapter 128, a chapter 128 is not a bankruptcy but allows you to pay your creditors back with no interest within 36 months.
If you are filing a another Chapter 7 bankruptcy, you have to wait more than 8 years since the discharge of your previous chapter 7 bankruptcy.
Many lenders will still consider your home loan even with a prior Chapter 7 Bankruptcy or a Chapter 13 Bankruptcy.
Chapter 7 bankruptcy is considered a liquidation proceeding. Under a 2005 change in the law an individual must complete a credit counseling course within 6 months prior to filing bankruptcy.
