Differences About Bankruptcy Problems

The overarching differences between the two, in the state of New York, is the way in which debt is repaid, the timeline for the debt to be repaid, and the issues of protecting assets as opposed to liquidation. There are limited circumstances where taxes, along with student loans, can be dismissed due to extreme hardship. This requires a "means test" to determine whether Chapter 7 is allowed. This is for those who can pay both their living expenses as well as make payments to creditors. With chapter 13, on the other hand, the timeline is a very important part of the process. Although it must be mentioned that New York law in particular allows for protection of all or a portion of your property from being seized by creditors, giving you some options that would normally be unavailable. But even with a basic understanding, it is advisable to use an attorney who specializes in bankruptcy law if you ever have to deal with the situation. Since a Chapter 13 is not a liquidation bankruptcy, you are able to keep your assets no matter what the state exemption protections are. Debtors will propose a repayment plan, and depending on their income, will be paid in installments over a set amount of time. Doktofsky, P. Protecting Assets or Liquidation

When it comes to assets, the process gets a bit more complicated. Bankruptcy Timeline

There is a major time difference between the two processes, as a Chapter 13 bankruptcy follows a much longer timeline than a Chapter 7. With the inherent complexity of these processes, it is necessary to have an eye for detail along with knowledge of the laws if you ever have to deal with a bankruptcy. The Law Office of Andrew M. Although Chapter 7 bankruptcy tends to eliminate most debts, there are several exceptions. This type of bankruptcy allows certain debts to be eligible for elimination. As for the most common of these, you will still be liable for taxes, student loans, child support, civil fines and criminal fines. Eligibility for Bankruptcy