Bankruptcy Basics Attorney in Kansas City, Missouri

What’s the difference between Chapter 7 and Chapter 13?

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00:04
in a nutshell in chapter seven is the
00:06
liquidation basically the client’s in
00:08
and out of the case in about 95 to 100
00:10
days the debts that are discharged will
00:12
just simply go away you don’t ever have
00:14
to worry about repaying them but it
00:16
doesn’t i mean unless somebody wants to
00:17
surrender a house or surrender a vehicle
00:19
or some other secured asset it doesn’t
00:22
really affect those debts if the client
00:24
wants to keep them then they got to keep
00:25
making the payments on them which
00:27
unfortunately means sometimes that
00:29
they’re significantly underwater they
00:31
actually have to pay the amount of the
00:32
debt they have to pay the contract rate
00:34
of interest which in a lot of these are
00:37
are fairly expensive you can actually
00:39
redeem some of that property we don’t
00:41
see it very often because it’s requires
00:44
setting a value and the client being
00:45
able to pay a fairly significant lump
00:47
sum all at once but sevens are generally
00:49
pretty quick pretty cheap pretty
00:51
painless pretty easy all things
00:52
considered the 13 again on the other
00:54
hand is the reorganization and those
00:56
plans last for three to five years

Kansas City, KS bankruptcy attorney Tracy L. Robinson explains the difference between Chapter 7 and Chapter 13.

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