HOW DO CHAPTER 7 & 13 BANKRUPTCIES COMPARE?
House & vehicle payments current, or willing to surrender. Current on taxes and child support, or willing to work with those creditors.
Under $63,698 annual gross*
Income family of 2
All your property is exempt.
Your property is worth more than the exemptions or is not exempt.
Over $63,698 annual gross*
Your income barely covers your basic living expenses.
Your income is more than your basic living expenses.
Home has under $150,000 equity and vehicles under $6, 000 equity (Arizona specific).
*Annual gross amounts change periodically.
*Annual gross amounts change periodically. Plus deductions for certain debts.
Must pay the creditors the non-exempt portion in order to keep property.
House & vehicle payments NOT current and want to keep. Or need to pay back taxes or child support. Or have property settlement issues.
Can keep your home or vehicles if current and under exemptions. Arrears on child support or tax creditors can still pursue you.
Can pay arrears on your home, while keep payments current & payoff vehicles. Plus pay arrears on child support or tax creditors.
Limits on filing a bankruptcy
File a 7 and receive a discharge - cannot get another discharge in new 7 for 8 years from filing or 6 years if prior case was chapter 13.
File a 13 and receive a discharge - cannot get another discharge in new chapter 13 for 2 years from filing or 4 years if prior case was chapter 7.
Discharge in chapter 7
Discharge in chapter 13
Individuals: discharge is normally 4 months after filing. Not all debts are discharged.
Company: does not receive a discharge.
Individuals: Discharge is entered at the conclusion of chapter 13 (3 to 5 years).
Company: can not file chapter 13.
CREATED BY DIANE L. DRAIN, ESQ.Law Office of D.L. Drain, P.A.
2375 East Camelback , #600, Phoenix, AZ 85016
Phoenix: 602-246-7106/Fax: 602-249-1969 3/2019