What is the difference between Chapter 7 and Chapter 13?

What is the difference between Chapter 7 and Chapter 13?

With Chapter 7, those types of debts are wiped out with your filing’s court approval, which can take a few months. Under Chapter 13, you need to continue making payments on those balances throughout your court-instructed repayment plan; afterwards, the unsecured debts may be discharged.

Can one spouse file Chapter 13 and not the other?

Yes, a married individual can file for Chapter 13 bankruptcy without their spouse. But if you share a household, your spouse’s income must be included in the petition. Those who live in separate households do not need to include their spouse’s income — which is often the scenario in a separation case.

Can one spouse file Chapter 7 and the other Chapter 13?

The short answer is YES.

How does divorce affect Chapter 13?

Even if you get divorced during your Chapter 13 bankruptcy, you can still continue making your regular plan payments. But if you can’t work out how to divide your payment with your ex, this may not be possible.

What worse Chapter 7 or 13?

Most consumers opt for Chapter 7 bankruptcy, which is faster and cheaper than Chapter 13. The vast majority of filers qualify for Chapter 7 after taking the means test, which analyzes income, expenses and family size to determine eligibility.

What happens if my wife files for bankruptcies?

If most debts are owed only by one spouse, it may be appropriate for that spouse to file for bankruptcy alone. However, if one spouse does file for bankruptcy in order to discharge debts, the other spouse may be held responsible for repayment of some debts, such as jointly-owned credit card debt or medical debt.

How does Chapter 7 affect my spouse?

If a husband files bankruptcy without his wife, only the husband’s debts are discharged. If the debts are held jointly, the non-filing wife will still owe even after one spouse has filed bankruptcy. The bankruptcy filing will appear on the husband’s credit report, but should not appear on the wife’s.

Am I responsible for my husband’s debt if we are separated?

The general rule in California is that a spouse ceases to be responsible for any debts incurred by the other spouse once they have separated.

What is protected under Chapter 13?

This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.

How does Chapter 7 affect your mortgage with an ex?

Your Co-signed House in Chapter 7 Your ex’s bankruptcy will wipe out his liability for the mortgage against the property, but it doesn’t eliminate the mortgage’s lien against the house. Your lender is probably just fine with this state of affairs because it still has you on the hook for the loan.

What happens to debt when divorcing?

In most states, you are responsible for all credit card debt incurred in your name in a divorce. You will not be responsible for your spouse’s credit card debt if it is in their name only. In community property states, if the card originated during the marriage, you are responsible for 50% of the debt.

How can I protect myself from my husband’s debts?

Keep separate bank accounts, take out car and other loans in one name only and title property to one person or the other. Doing so limits your vulnerability to your spouse’s creditors, who can only take items that belong solely to her or her share in jointly owned property.

Can you lose your house in a Chapter 13?

In Chapter 13 bankruptcy, you can keep all of your property. But that doesn’t mean that you won’t have to pay for some of it. You’re allowed to protect, or “exempt,” a certain amount of equity in the property you’ll need to maintain a home and job.