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What’s the distinction between Chapter 7 and Chapter 13 bankruptcy?

What’s the distinction between Chapter 7 and Chapter 13 bankruptcy?

Brief Answer: In purchase to register under Chapter 7, your earnings needs to be not as much as the income that is median their state of Minnesota or Wisconsin. In the event that you qualify, your personal debt – credit cards, medical bills, and particular types of loans – should be destroyed.

In a Chapter 13 bankruptcy, the debt is restructured relating to a repayment plan consented to by the creditors. A trustee is appointed by the court, tasked with ensuring you will be making re payments on some time creditors get a share of what they’re owed during the period of 3 or 5 years.

Can I need to go to court once I file bankruptcy?

Brief Solution: In bankruptcy cases that are most, you simply need to head to a proceeding called the “meeting of creditors”, that is a brief and easy conference what your location is expected a few pre-determined questions by the bankruptcy trustee. The meeting doesn’t take place in a courtroom while the meeting is held at the courthouse.

Sporadically, if problems arise, you may need to appear at a hearing in the front of the bankruptcy judge. In a Chapter 13 situation, you might need to appear at a hearing as soon as the judge decides whether your plan ought to be authorized (although in Minnesota that is not really often). If you want to visit court, you are going to get notice for the court time and date through the court or your lawyer who can allow you to get ready for your look.