Differences Between Chapters 7 and 13 Bankruptcy

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Bankruptcy
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In 1989, Michael Vereen earned his master of laws from Emory University. He has since practiced in Georgia’s Cherokee, Forsyth, and Cobb counties. Michael Vereen specializes in criminal, DUI, and individual bankruptcy cases.

Bankruptcies can be characterized as the liquidation or reorganization of debts. While there are six types of bankruptcy filings under US law, the most common are Chapter 7 and Chapter 13.

Chapter 7 is available to those with limited disposable income. Upon filing for bankruptcy, the client’s credit cards, medical bills, and other unsecured debts are wiped clean. Under Chapter 7, the court appoints a trustee who sells the filer’s nonexempt assets to reimburse creditors.

A Chapter 13 bankruptcy includes repayment plans and protection of assets not exempt under Chapter 7. For instance, a debtor has 36 to 60 months to pay late mortgages or taxes. The sum required for settlement is dependent on expenses, income, and types of debt.

E. Michael Vereen III, Attorney at Law, (770) 345–9449, vereenlaw.com.

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