The basic difference between chapter 7 and chapter 13 is that under chapter 7 the debtor's nonexempt property (if any exists) is liquidated to pay as much as possible of the debtor's debts, while in most chapter 13 cases a portion of the debtor's future income is used to pay as much of the debtor's debts as is feasible considering the debtor's circumstances.

wishes to repay all or most of his or her unsecured debts and has the income with which to do so within a reasonable time, has valuable nonexempt property or has valuable exempt property securing debts, either of which would be lost in a chapter 7 case, has one or more substantial debts that are dischargeable under chapter 13 but not under chapter 7, or has sufficient assets with which to repay most debts, but needs temporary relief from creditors in order to do so.

Under certain circumstances a debtor may be able to modify a secured debt such as a vehicle or mobile home. The debtor may have the need for bankruptcy relief for future bills and wants to hold open the possibility for conversion or refilling [e.g. anticipated medical bills].

It depends on numerous factors. The amount paid to unsecured, nonpriority creditors ranges between 0% to100% with interest depending on the case.

Yes, after applying for obtaining court permission. The Debtor can keep the funds generated from the sale if the funds would have been exempt in a Chapter 7. If an asset is sold and the sale results in payment of a secured creditor that had been receiving money from the trustee, the Debtor may also seek to have the trustee payment lowered.

Most debtors have to appear in court at least twice: once for a hearing called the meeting of creditors, and once for a hearing on the confirmation of the debtor's chapter 13 plan. The meeting of creditors is usually held about a month after the case is filed. The confirmation hearing may be held on the same day as the meeting of creditors or at a later date The debtor's testimony should not be lengthy at either hearing, however.

Most debtors file for a complete discharge under Chapter 7. Chapter 13 is the repayment chapter. Some debtors will file a Chapter 13 in an attempt to save their home, by incorporating past due payments into the 5 year repayment. But beware, most of these plans fail with the debtors converting to a Chapter 7 anyway. Unless you have a good reason or are not eligible, most debtors should file Iowa bankruptcy under Chapter 7.

Chapter 7 provides for a complete discharge. Under Chapter 13, you pay back part of your debt over 5 years. With Chapter 13, you can repay past due home or car loans over time. But beware; many clients delay the inevitable by filing a Chapter 13, making some payments and then failing and having to file a Chapter 7 anyway. Click here for more information.

Filing a chapter 13 bankruptcy has several advantages over a chapter 7 liquidation. A chapter 13 bankruptcy allows you to discharge a few more types of debts than does a chapter 7 bankruptcy. If you own an unincorporated business and your business is not a partnership, you can continue to own and operate the business under a chapter 13 plan. Under a chapter 7 liquidation, a bankruptcy court may order that your business or its assets be sold.

The decision to have debts forgiven under Chapter 7 or to formulate a plan for repayment under Chapter 13 is made after careful attention is given to the types of debts owed, the property owned, and the income of the Debtor. Almost everyone wants to pay his or her debts, but some people cannot afford to do what they want to do, and a Chapter 7 might serve their interests better. In South Carolina, approximately 50% or more of consumer bankruptcy cases filed are Chapter 13.

Chapter 13 may consist of a partial payback. In addition, interest is generally stopped. The CCCS Debt Management Plan is a 100% payback to all creditors and interest may not be stopped just because you are paying through CCCS. All parties are participating in a voluntary manner. Creditors look at CCCS as a positive way for consumers to solve their financial problems as opposed to bankruptcy. CCCS cannot advise you to file bankruptcy or not.

Our program is voluntary for both you and your creditors. In a Chapter 13 bankruptcy, creditors will be forced negotiate new payment terms. In some cases, the court may force an uncooperative creditor to accept new payment terms through a process called "cram down". The court will administer the plan through a Trustee who will have control of your finances.

NO! Often people file bankruptcy before they are seriously delinquent on their monthly debts. If you can barely make the minimum payments required on your credit cards, or if it appears that you will not be able to make payments as they come due, it may be better for you to file bankruptcy rather than let your situation deteriorate. YES! A federal injunction (automatic stay) goes into effect immediately when a person files bankruptcy, which stops the foreclosure.

In a chapter 13 case, the bankruptcy court can provide aid to the debtor that private debt consolidation services provide. For example, the court has the authority to prohibit creditors from attaching or foreclosing on the debtor's property, to force unsecured creditors to accept a chapter 13 plan that pays only a portion of their claims, and to discharge a debtor from unpaid portions of debts. Private debt consolidation services have none of these powers.

Debt Management Programs are completely voluntary for you and your creditors. A Chapter 13 bankruptcy may release some of the debts owed to creditors. Debt Management Programs provide complete payback to the creditors of your outstanding debt. Subsequently, creditors look more positively at a Debt Management Program since it can help prevent their customers from filing bankruptcy, which would cause them to write off debts owed to them.

Answer: A Debt Management Plan is a 100% payback to all creditors. Unlike in bankruptcy, all parties (creditors, the consumer and Christian Credit One) are participating voluntarily. Most creditors look at a Debt Management Plan as a more positive alternative for consumers to solve their financial problems.

Bankruptcy is a legal proceeding in which people who cannot pay their debts can get a fresh financial start. The right to file for bankruptcy is provided by federal law and all bankruptcy cases are handled by in federal court. Filing bankruptcy immediately stops all of your creditors from seeking to collect debts from you, at least until your debts are sorted out according to the law. Most people filing bankruptcy will file under either chapter 7 or chapter 13.