What is the difference between Chapter 7 and Chapter 13?
In Chapter 13, the debtor pays a portion of non-secured debt and all of the secured and priority debt over a period of 3 to 5 years. The debtor is allowed to keep both exempt and non-exempt property. In Chapter 7, the debtor is not required to pay any dischargeable, debt and is not allowed to keep any non-exempt property. Whether to file under Chapter 7 or Chapter 13 should be discussed with an attorney.
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