LogFAQs > #948217267

TheBlueMonk_ posted...

thanks for this reply. yeah i was confused on the two types, so that helps. who determines what you get? do you apply for a specific type or does a judge decide?

You choose which one you want. Each has their own requirements to qualify. You may qualify for one or both of them, but you can only choose one.

The Ch 7 is more stringent since it is straight up immediate loan forgiveness. You have to make under a certain amount to qualify. There are a few other small requirements too.

Some people opt for Ch 13 because they have assets that could be liquidated with a Ch 7. With a Ch 13 you get to keep all your assets through the program. Other people who make too much and don't qualify for Ch 7 usually qualifies for Ch 13.

Lastly, a huge benefit of Ch 13 is that your student loans are automatically deferred for the five years you are in the program. So if your student loan payments are killing you, then this allows you to focus on all your other debts while pushing back your student loan payments until those are the only loans you have left five years later. Just keep in mind interest continues to accrue on them. With a Ch 7, ones your loans are forgiven, you are back to paying your student loans within a few months.

One more difference is that a Ch 13 bankruptcy disappears from your credit report much quicker than a Ch 7.

---

Congratulations! Your post was deemed response-worthy.