What is the difference between a Chapter 7 and a Chapter 13 Bankruptcy?
I get calls all day with this exact question. Although they are both bankruptcies, clients who file have different goals and rationale for filing:
Chapter 7 is a complete liquidation. It is designed for individuals and certain companies who do not have the ability to pay their debts. In chapter 7, the trustee will liquidate any non-exempt property in order to distribute the proceeds to creditors according to the...