Chapter 7 Bankruptcy Is What Most People Prefer

All people who consider filing bankruptcy eventually arrive at a common point of inquiry: What is Chapter 7 bankruptcy and do most people prefer it over Chapter 13? The short answer is based on payments required, or rather not required in Chapter 7 but that are required in Chapter 13. Under Chapter 7 laws, a full discharge is commonly available in less in than 100 days, whereas plans last from between three to five years. Oddly, people who file of each of the chapters experience the same difficult with obtaining credit both while a case is pending and for several years after the case is closed.

Recently, filing bankruptcy in Chapter 7 became more difficult because of income restrictions. Today, qualification requires below average low income, excessively high debts, and two years residency to claim state exemptions.