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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2820
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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What is the difference between and Chapter 7 and a Chapter

Resolved Question:

What is the difference between and Chapter 7 and a Chapter 13 bankruptcy, and what are the chances of it being accepted if a judge has to accept it. And do you have to get an attorney to file this for you? Thanks
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.

Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions.

Terry L. :

Chapter 7 discharges consumer debts- credit cards, medical etc.
Chapter 13 is a debt repayment plan, usually paying from 10-100% of the unsecured debts back and 100% of secured debts, 100% of mortgage arrears.

Terry L. :

You should always use an attorney when filing bankruptcy.

Terry L. :

The court will approve a feasible chapter 13 repayment plan assuming you meet the code requirements, and can afford the monthly payments.

Terry L. :

Chapter 7 cases aren't really 'approved'.

Terry L. :

it is whether the trustee will liquidate any unexempt assets or if a creditor files an adversary objecting to discharge of the debt.

Terry L. :

To file chapter 7, the debtors must pass the means test (6 month household income review)

Terry L. :

If the test shows that there is still disposable monthly income, then the chapter 13 will be needed.

Terry L. :

Currently, the median income in Georgia for a 4 person household is $68,122

Terry L. :

if the total household income from the 6 months leading up to the case, as computed to yearly figures is above this figure, then the means test needs to be calculated.

Terry L. :

Just because the income is higher, does not preclude a chapter 7. There are variable and set deductions for the county they live in, so meet with that attorney again to re-run the numbers.

Terry L. :

do you have any questions?

Terry L. :

thanks for your question, feel free to request me for any future questions. good luck to you and your son.

JACUSTOMER-1063kblk- :

I cannot read the top part of the answer, it starts at "if the total household income"

Terry L. :

I'll switch this to Q&A perhaps you can read it there. I'll repost as well


Terry L. and other Bankruptcy Law Specialists are ready to help you
Expert:  Terry L. replied 6 years ago.
Terry L. says:
12/1/10 1:58 PM
Hi and thank you for your question. In the future, you can request me to answer any further questions.
12/1/10 1:59 PM
Chapter 7 discharges consumer debts- credit cards, medical etc.
Chapter 13 is a debt repayment plan, usually paying from 10-100% of the unsecured debts back and 100% of secured debts, 100% of mortgage arrears.
12/1/10 1:59 PM
You should always use an attorney when filing bankruptcy.
12/1/10 1:59 PM
The court will approve a feasible chapter 13 repayment plan assuming you meet the code requirements, and can afford the monthly payments.
12/1/10 1:59 PM
Chapter 7 cases aren't really 'approved'.
12/1/10 2:00 PM
it is whether the trustee will liquidate any unexempt assets or if a creditor files an adversary objecting to discharge of the debt.
12/1/10 2:00 PM
To file chapter 7, the debtors must pass the means test (6 month household income review)
12/1/10 2:01 PM
If the test shows that there is still disposable monthly income, then the chapter 13 will be needed.
12/1/10 2:02 PM
Currently, the median income in Georgia for a 4 person household is $68,122
12/1/10 2:03 PM
if the total household income from the 6 months leading up to the case, as computed to yearly figures is above this figure, then the means test needs to be calculated.
12/1/10 2:04 PM
Just because the income is higher, does not preclude a chapter 7. There are variable and set deductions for the county they live in, so meet with that attorney again to re-run the numbers.
12/1/10 2:04 PM
do you have any questions?
12/1/10 2:12 PM
thanks for your question, feel free to request me for any future questions. good luck to you and your son.

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