can anyone explain how this works? an inlaw is filing, and I am not surprised since they live well above their ability. always thought it was more business related filing.
or 13 are the most common bankruptcies for individuals.
basically chapter 7 means you cannot pay any of your debt and all allowable debt is discharged, and you cannot keep many assets or have income over a certain level to qualify.
chapter 13 is more common for homeowners and is basically more like a "repayment plan". You can usually keep your house, etc. in this case, but must repay over a court/creditor agreed time period your debts (5 years?)
I'm a degreed accountant, but have never worked one day in accounting so this is from memory of college 15-20 years ago.
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basically chapter 7 means you cannot pay any of your debt and all allowable debt is discharged, and you cannot keep many assets or have income over a certain level to qualify.
chapter 13 is more common for homeowners and is basically more like a "repayment plan". You can usually keep your house, etc. in this case, but must repay over a court/creditor agreed time period your debts (5 years?)
I'm a degreed accountant, but have never worked one day in accounting so this is from memory of college 15-20 years ago.
google everything I said to verify it.