If you are drowning in debt and need immediate debt relief, bankruptcy may be a suitable option for you. When you work with Greg Dunn, Bankruptcy Attorney in Honolulu, HI, he will outline your options and show you how Chapter 7 and Chapter 13 bankruptcy can help you achieve your debt relief goals. Having helped thousands of clients obtain a new lease on life, Greg Dunn possesses the tools and experience necessary to help you eliminate your debt and get back on your feet.

The 5 Key Differences Between Chapter 7 & Chapter 13 Bankruptcy

1. The Type of Bankruptcy

Chapter 7 bankruptcy is a liquidation bankruptcy, whereas Chapter 13 is a debt reorganization bankruptcy. What this means is that under a Chapter 7, all of your unsecured debts (such as credit card balances and medical bills) will be eliminated. Chapter 13, on the other hand, is a reorganization bankruptcy, meaning that your debts will be reorganized and your monthly payments lowered to something you can afford. You will then be put on a repayment plan for the next three to five years. 

2. Eligibility Requirements

In order to qualify for a Chapter 7 bankruptcy in Hawaii, you must make $49,919 or less as a single earner. If you make more than that as a single earner, or if you and your spouse make more than the median income level for a two-person household (which is $63,896), you would need to file a Chapter 13 bankruptcy.

3. Length of Bankruptcy

It typically takes three to five months for all debts to be discharged under a Chapter 7 bankruptcy. A Chapter 13, on the other hand, can last anywhere from three to five years.

4. What Becomes of Your Property

Under a Chapter 13 bankruptcy, you are allowed to keep your property under the conditions that you make payments toward it on the repayment plan. With a Chapter 7, however, your property will be liquidated in order to pay off your lenders.

5. Benefits

Each type of bankruptcy comes with its fair share of benefits. The most notable benefit for a Chapter 7 is that your debts are discharged right away, therefore allowing you to make a fresh start within months. The biggest benefit of filing a Chapter 13 bankruptcy, however, is that you get to keep your property and are given the opportunity to catch up on missed payments.

If you’re in over your head with debt and unable to see the light at the end of the tunnel, Greg Dunn, Bankruptcy Attorney will guide you toward the best debt relief solution for you. Don’t wait for creditors to come knocking. Call (808) 524-4529 to schedule a consultation with Greg Dunn, or visit their website to learn more about your bankruptcy options.