Consumers in Savannah have the option of two different types of bankruptcies, depending on the facts and circumstances surrounding the financial difficulty. A Chapter 7 or a Chapter 13 bankruptcy both serve essentially the same purpose, but there are distinct differences between the two. Before a Savannah consumer can determine whether a Chapter 7 or a Chapter 13 bankruptcy is appropriate to his or her circumstances, a basic understanding of both is necessary.
Chapter 13 Bankruptcy Savannah GA Versus Chapter 7 Bankruptcy
The basic difference between a Chapter 7 bankruptcy and a Chapter 13 bankruptcy finds its best expression in the differing manner in which these two cases ultimately are resolved. Through a Chapter 7 bankruptcy, a consumer obtains a discharge or liquidation of most, if not all, of his her debt. On the other hand, in a Chapter 13 case, a consumer maintains responsibility for most or all of his or her debt. However, in Chapter 13, despite maintaining ultimate responsibility for debt, obligations are reorganized to provide the consumer a means for which a reasonable monthly payment can be made to the bankruptcy trustee, which is then distributed to the individual debtors.