A major difference between a chapter 13 bankruptcy case and a chapter 7 bankruptcy case.
When a person files a chapter 7 bankruptcy case, their non-exempt property (if any exists) is liquidated to pay as much money back to his/her creditors as possible. So, in a chapter 7 case the debtor could lose all or most of his/her non-exempt property.
A person filing a chapter 13 bankruptcy case usually retains his or her non-exempt property. However, he/she is required to pay the value of the non-exempt property to his/her creditors. The determined amount is usually paid by the debtor, through the chapter 13 plan, over 3-5 years.
Don’t be alarmed, many people contemplating bankruptcy have very little or no non-exempt property. However, you should consult with a knowledgeable bankruptcy lawyer if you are thinking about filing for bankruptcy.
As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY. Contact us at (516) 858-2620 to arrange a bankruptcy consultation with one of our attorneys.
Please visit our Bankruptcy category to learn more about filing chapter 7 or 13 bankruptcy.
Tags: attorney, attorneys, bankruptcy case, bankruptcy lawyer, Brooklyn, Chapter 13, chapter 7 bankruptcy, consultation, creditors, debtor, exempt property, filing chapter 7, filing for bankruptcy, Long Island, Mineola, nassau county, Queens, Suffolk
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