Chapter 7 vs. Chapter 13

The Difference Between Chapter 7 & 13 Bankruptcy

Chicago Bankruptcy Lawyer Explains

At Law Offices of David Freydin, we have a thorough understanding of bankruptcy law. Our highly trained staff will be able to provide you with all of the information you need to make a decision regarding filing for bankruptcy. With our learned advice, we will recommend what type of bankruptcy we feel is appropriate for your financial circumstances. Having an experienced Chicago Bankruptcy attorney at your side will ensure you obtain the results you need from your bankruptcy. Below are some differences between the two most common types of bankruptcy.

Chapter 7 Bankruptcy

If you have overwhelming debt that you find you just cannot pay due to circumstances beyond your control, such as the loss of a job, divorce or unexpected medical bills, then Chapter 7 is possibly the type of bankruptcy you need. If you do not have the means to repay your debt and just don’t see a way out, the bankruptcy laws allow you to file for this type of protection from your creditors. When the bankruptcy is filed, all of your liabilities and assets will be reviewed by the Court and all of your creditors will be notified of the pending bankruptcy.

Most people are allowed to keep their assets, such as a vehicle or a certain amount of money in a bank account. Filing a Chapter 7 bankruptcy is a rather easy procedure, taking only a few months, but your creditors must stop contacting you as soon as your bankruptcy is filed. For complete information on a Chapter 7 bankruptcy filing, contact our experienced and caring legal team for a free consultation.

Chapter 13 Bankruptcy

In a Chapter 13 filing, if you have a steady job or regular source of income such as from a small business or pension, than you may be eligible for this type of a bankruptcy. If you have incurred too much debt and are being harassed by creditors or being threatened with lawsuits or garnishment, this bankruptcy will stop the collection calls and allow you to restructure your debt. As with Chapter 7, your assets and liabilities will be reviewed. However, in a Chapter 13 bankruptcy, your debt will be restructured so you will be able repay it over time.

Main Differences

The main difference between Chapter 7 and Chapter 13 is your ability to repay your debts. To determine this, the court requires us to evaluate your case through a “means test”. Basically, do you have the “means” to repay your debt? If it appears that you have the ability to repay some of your debt, then a Chapter 13 bankruptcy may be more appropriate. At Law Offices of David Freydin, we will carefully review your financial situation with you in order to determine the best course of action for your specific circumstances.

With the various issues that come into play with bankruptcy, we urge you to contact Law Offices of David Freydin to ascertain which type of bankruptcy is best for you. Our free initial consultation will allow you to have your questions answered. Contact a Chicago bankruptcy attorney from Law Offices of David Freydin to discuss your bankruptcy or other legal debt relief options.

Our Client Testimonials

    "Forget All the Others, this Firm is the Real Deal!"
    Charles is an excellent attorney. All of our questions were answered and no question was looked at as dumb. They give all their clients their full attention and you don't see that with too many lawyers. Though we have finished our case with them, they still took the time to answer questions that I had afterward. I would recommend them to anyone who is looking for a bankruptcy attorney.
    V and M Natour - Chapter 7 Clients
    Chicago, IL
    "Wonderful to Work With & Very Accessible"
    The guys are wonderful people to work with and they are very accessible and always willing to answer any questions you may have no matter how stupid you think they may be. I will definitely recommend they and use them again if needed in the future.
    Chapter 7 Client
    Chicago, IL
    "He Always Returned Our Calls and Emails"
    Deciding to file bankruptcy was not an easy decision. Mr. Glanzer spent a great deal of time with me and my husband discussing the various options available to us. He answered all of our questions and always returned our calls and emails. Thanks to him, my husband and I now have our fresh start. We are so grateful for his compassion and time. I highly recommend him.
    Deborah, Chapter 7 Client
    Chicago, IL
    "A Very Hands on Attorney - Patient & Attentive"
    I found Mr. Glanzer to be a very hands on attorney. Anytime I had any questions or concerns I felt very comfortable calling him and he was very patient with answering all my questions.
    Chapter 7 Client
    Chicago, IL
    "He Took the Time to Explain Everything"
    I so appreciated Mr. Glanzer's patience in helping me through a challenging time. He took the time to explain everything to me very thoroughly to be sure I fully understood. I'm very grateful to have found him and would highly recommend him.
    Chapter 7 Client
    Chicago, IL

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Why Choose Us?

  • We offer a FREE case evaluation to all prospective clients
  • We have two convenient office locations in Chicago
  • We have outstanding reviews from former clients
  • We make sure clients are always prepared for their hearings
  • We aggressively protect clients from creditor harassment
  • We return all calls and emails in a timely manner
  • We will keep you up-to-date about any progress in your case
  • We give every client the personal attention they deserve
  • We have successfully handled hundreds of bankruptcy cases
  • We have over 20 years of experience