A bankruptcy proceeding liquidates your financial situation and you will possessions when you are Chapter 13 was a reorganization of your costs. Part of the difference is that for the Part 13 you are going to pay off a share of your personal debt over about three or 5 years. A bankruptcy proceeding is probable a good option in the event that: – The money you owe are primarily unsecured and you will dischargeable (handmade cards, medical expenses, personal loans) – You really have little low-excused possessions – You don’t need to reduce defaults to hold protected possessions – You do not have disposable income which could funds a section thirteen plan Part 13 could be smart to: – Has actually non-dischargeable expense (alimony, guy assistance, taxes, fines and you may charges, student loans) – Must hold non-exempt property – Have to lose a home loan otherwise auto loan standard – Have higher websites throw away money
