Which process leaves you with no debt when it is over?(1 point) Responses Chapter 13 bankruptcy Chapter 13 bankruptcy neither Chapter 7 nor Chapter 13 bankruptcy neither Chapter 7 nor Chapter 13 bankruptcy Chapter 7 bankruptcy Chapter 7 bankruptcy both Chapter 7 and Chapter 13 bankruptcy
Chapter 7 bankruptcy
The process that leaves you with no debt when it is over is Chapter 7 bankruptcy.
The process that leaves you with no debt when it is over is Chapter 7 bankruptcy. This is a legal process that allows individuals or businesses to eliminate most or all of their debts. To determine the correct answer, we need to understand the difference between Chapter 7 and Chapter 13 bankruptcy and how they affect your debts.
Chapter 7 bankruptcy, also known as "liquidation bankruptcy," involves the liquidation of your assets to pay off your debts. However, not all assets are subject to liquidation, and there are exemptions that protect certain types of property. Once the assets that are not exempt are sold, the proceeds are distributed among your creditors, and any remaining debts are discharged, meaning you are no longer obligated to pay them.
On the other hand, Chapter 13 bankruptcy, also called "reorganization bankruptcy," involves creating a repayment plan over a period of three to five years to pay off your debts. This repayment plan is based on your income and ability to pay. While Chapter 13 allows you to catch up on missed payments and potentially keep certain assets, it does not necessarily eliminate all debts completely.
So, in summary, Chapter 7 bankruptcy is the process that leaves you with no debt when it is over.