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Bankruptcy Archives

Chapter 7 vs. Chapter 13 Bankruptcy

Chapter 7

A Chapter 7 bankruptcy is a liquidation bankruptcy which allows the debtor to discharge general unsecured debts. These general unsecured debts include credit cards and medical bills, past due utility bills, personal loans, collection agency accounts, and others. Individuals looking to file this type of bankruptcy must pass the Chapter 7 Means Test. Eligibility is determined through income brackets that look at the debtor's income and household size. If you make too much money, you may be required to file a Chapter 13 bankruptcy.

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