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cricket20 [7]
3 years ago
9

What is the largest difference between Chapter 7 and Chapter 13 bankruptcy?

Social Studies
1 answer:
Norma-Jean [14]3 years ago
3 0

The main difference between Chapter 7 and Chapter 13 bankruptcy is in the way the debt payment is structured.

Under Chapter 7 a debtor's assets are sold off to pay the lenders (creditors) in a process called liquidation.

Chapter 13 on other hand is more of a negotiation since debtors filing under this chapter still receive a regular income and with that they can negotiate a payment plan to repay the loan without having to liquidate all of their assets.

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