Chapter 13 Bankruptcy Law

The court-supervised process of reorganizing a debtor’s estate as well as the formation of a repayment plan to settle the rest of his debt is regulated by chapter 13 bankruptcy law. Chapter 13 bankruptcy law allows debtors who, after the reorganization of their estate, if they are proven to maintain sufficient income to meet the monthly payments on their debts, to keep certain assets like a house or a car. Under chapter 13 bankruptcy law, all collection attempts by creditors must stop as soon as the debtor’s bankruptcy petition has been accepted by the court. In order to treat both debtor and creditors fairly, chapter 13 bankruptcy law requires creditors to voice any objections to the Trustee who oversees the bankruptcy case, and if necessary, to the court. Chapter 13 bankruptcy law defines the types of debt, as well as the amount of debt, that can be settled by chapter 13 bankruptcy. In addition, chapter 13 bankruptcy law delineates which assets may be exempt from a debtor’s estate in his bankruptcy case.

Chapter 7 Bankruptcy Law

Chapter 7 bankruptcy law regulates the form of personal bankruptcy as it is described in chapter 7 of the Bankruptcy Code. In short, chapter 7 bankruptcy law controls the process of the court-supervised liquidation of a debtor’s assets and the repayment of his debtors with the proceeds. If the proceeds of the liquidation are not enough to pay the debt in full, chapter 7 bankruptcy law generally allows the remainder of the debt to be waived. However, chapter 7 bankruptcy law also makes exceptions to this waiver; tax debts, government fines and child support will typically not be waived by the court, meaning the debtor will still have to pay them. The types of debt that may be settled by means of a chapter 7 bankruptcy, as well as the amount of debt, are defined by chapter 7 bankruptcy law. Furthermore, a debtor’s rights and obligations, as well as the role of the court-appointed Trustee and the Court itself in the bankruptcy proceedings, are defined by chapter 7 bankruptcy law.