What's the difference between Chapter 7 and Chapter 13 for keeping my property?
Chapter 7 is a liquidation that discharges most unsecured debts in a few months but requires passing a means test based on income; you keep exempt property and may surrender non-exempt assets. Chapter 13 is a reorganization for people with regular income who don't qualify for Chapter 7 or who want to keep property they're behind on. It sets up a 3-to-5-year repayment plan that lets you catch up on mortgage or car arrears and stop foreclosure while keeping the asset. Chapter 13 also protects co-signers better and can strip certain junior liens. If your main goal is saving a home you've fallen behind on, Chapter 13 is often the tool. A bankruptcy attorney can run the means test for you.
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