How does Chapter 13 bankruptcy differ from Chapter 7 bankruptcy?
a. Individuals keep their assets after Chapter 13 bankruptcy reorganization occurs
b. Individuals lose their assets after Chapter 13 bankruptcy reorganization occurs.****
c. Individuals’ credit reports are not impacted when Chapter 13 bankruptcy is filed.
d. Individuals’ credit reports are impacted less when Chapter 7 bankruptcy is filed.
well i failed and imma give u the answer for connexus students
1What is bankruptcy?
A.making more money than you spend
B.spending more money than you make
C.******not being able to repay your loans******
D.owing money and paying it back
2.How does Chapter 13 bankruptcy differ from Chapter 7 bankruptcy?
A.****Individuals keep their assets after Chapter 13 bankruptcy reorganization occurs.******
B.Individuals lose their assets after Chapter 13 bankruptcy reorganization occurs.
C.Individuals’ credit reports are not impacted when Chapter 13 bankruptcy is filed.
D.Individuals’ credit reports are impacted less when Chapter 7 bankruptcy is filed.
Which statement describes Chapter 13 bankruptcy? Select all that apply.
A.All of the debtor’s assets are divided amongst their creditors.
B.Debtors lose all of their assets.
C.****Debtors are allowed to keep their assets*****
D.****Debtors establish repayment plans.****
He is right just did it
C
A
C.d
Anonymous is 100% correct!
C
A
C D
The correct answer is:
a. Individuals keep their assets after Chapter 13 bankruptcy reorganization occurs.
To understand the difference between Chapter 13 and Chapter 7 bankruptcy, it's important to know the basics of both.
Chapter 7 bankruptcy, also known as "liquidation bankruptcy," involves the sale of a debtor's non-exempt assets to pay off their debts. It is typically available to individuals or businesses with limited income and few assets. In Chapter 7 bankruptcy, the debtor's assets are sold by a trustee, and the proceeds are distributed among their creditors.
On the other hand, Chapter 13 bankruptcy, also known as "reorganization bankruptcy," allows individuals to create a repayment plan to gradually pay off their debts. This type of bankruptcy is designed for individuals with regular income, as it allows them to keep their assets while repaying their creditors over a period of three to five years.
So, in Chapter 13 bankruptcy, individuals do not lose their assets. Instead, they work out a plan to repay their debts over time, usually while keeping their home and other valuable possessions. This is one of the key differences between Chapter 13 and Chapter 7 bankruptcy.