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What’s the difference between Chapter 7 and Chapter 13 bankruptcy?

                              A Chapter 7 bankruptcy can discharge credit card debt, medical bills, deficiencies on repossessed 
                              property and unsecured loans, without a repayment plan. Creditors share in monies the Trustee 
                              recovers if assets are liquidated. Most Chapter 7 bankruptcies are “no asset” cases, with 
no distribution 
                              to creditors.  A distribution can occur if the Trustee recovers an asset that has value beyond allowed exemptions.          

                              A Chapter 13 may involve repayment of all or a percentage of unsecured debt over a period of 3-5 years. 
                              The amount repaid, over time, is dependent upon your income, your expenses, the value of your assets, 
                              and the type and amount of your debt. Chapter 13 bankruptcies are often filed to stop home foreclosures. 
                              If you are in arrears on your home mortgage, initial Chapter 13 plan payments can be directed to your 
                              mortgagee to cure missed payments.

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