Being of the goal of Chapter 7 and Chapter 13 bankruptcy is to discharge debts, you might be wondering what the main differences are and the eligibility requirements. The main differences are the eligibility requirements for both bankruptcies are different, the wings of time that the types of bankruptcies are going to take, whether you are going to need to repay your debts or not, and how much property you can keep.
In chapter 7 bankruptcy you do not have to commit to paying your debts but in chapter 13 bankruptcy you have to file a debt repayment plan with the bankruptcy court. In chapter debt is going to be repaid over a 3 to 5-year period and you have to have income that is sufficient to make full timely payments. You won’t receive a discharge until you have completed your plan. Typically you do not lose your property in a chapter 13 bankruptcy as long as you can account for repayment of any arrearages as well as payments that come due during the plan.