What is the difference between Chapter 7 & 13?
June 27, 2022
By Diane Drain Attorney & Retired Law Professor
With the filing of a chapter 7 bankruptcy, the debtor’s assets and liabilities are effectively frozen.
Unless a court order is issued, fully secured creditors will keep their claim on the collateral.
In contrast, a chapter 13 bankruptcy focuses on future income rather than current assets.
Some debts, such as student loans, survive a chapter 13 bankruptcy.
About the Author: Diane Drain
Diane is a well respected Arizona bankruptcy and foreclosure attorney. As a retired law professor, she believes in offering everyone, not just her clients, advice about bankruptcy and Arizona foreclosure laws. Diane is also a mentor to hundreds of Arizona attorneys.
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