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A bankruptcy proceeding and you may Chapter 13 personal bankruptcy show a few similarities. Each other bankruptcy proceeding options are offered to some body, and one another give you the chance to launch particular expenses. Both choice instantaneously impose an automated stand to keep financial institutions regarding getting after that step against you, providing you with security for the processing techniques.

Here's the top difference: Chapter 7 bankruptcy proceeding was an excellent liquidation away from bills, and you will Part thirteen was an effective reorganization out-of expense.

A bankruptcy proceeding Bankruptcy proceeding

Declaring Chapter 7 bankruptcy normally discharge specific un-secured debts that have no accessory to help you assets. You're not expected to lower such costs. Around certain circumstances, secured expenses such as auto loans and you may mortgage loans will be discharged for people who no more need to support the assets.