chapter 13 to chapter 7

[papa0881]

im new to the site, what does chapter 13 to chapter 7 mean? we have tons of assets and do not want to loose any, what is chapter 7 exactly, i see that you dont have to pay anything..... however what if you have alot of assets? just wondering see alot of posts.

[HHM]

Some more back ground would be helpful...from the wording your thread title, it sounds like you are in a Chapter 13, is that true.

Have you filed with a lawyer.
Do you know what your state exemptions are.
Are you above or below your state's median income.
etc etc.

[papa0881]

50 k a year need to pay back 21% of claim, and also we are in 13 8 mo so far

[lrprn]

im new to the site, what does chapter 13 to chapter 7 mean?

Papa, you've asked something that takes whole books to explain Here's the very abbreviated version....

Chapter 7 bankruptcy allows a person or couple a way to liquidate assets when they decide that they are not capable of paying their debt. The trustee liquidates any debtor assets that aren't protected by exemptions. These assets (if any) are sold by the Chapter 7 trustee and the proceeds (if any) are given to creditors in a specific order set by the bankruptcy law. 100% of the filer's unsecured debt is wiped out. Depending on the debtor's financial circumstances, the state they file in, and the customs of their bankruptcy court, it's possible to keep a home and a car for each adult driver and still file Ch 7.

Chapter 13 is also called the wage earner's plan. It allows a person or a couple with a stable income to pay off debts under a court approved repayment plan over a 36 to 60 month period rather than surrender any property. Chapter 13 allows a debtor to keep most to all of their assets and reorganize their debt. In addition to keeping assets, usually at least a portion of their unsecured debt is wiped out.

Hope this helps!