Chapter 13 Vs Chapter 7
Follow my blog with Bloglovin Securing a loan is tricky but maintaining a healthy credit report after getting it can be trickier. Oftentimes, a borrower takes a loan from a lender when they need to arrange for a large amount of money in a quick time. They pay a certain part of the principal along with the interest on it every month until they pay off the borrowed amount of money. If a borrower fails to honor the agreement for one to two months, a fine is imposed on them for the duration. Usually, it adds up to the payment for the third month. What happens when they fail to honor it for more than three consecutive months? It leads to a double whammy on the part of a borrower: serious debt with legal consequences. The only ray of hope for a borrower to escape from such a daisy situation is to file a Chapter 7 bankruptcy or Chapter 13 bankruptcy on time. Here’s how both differ from one another. Chapter 7 bankruptcy vs. Chapter 13 bankruptcy laws Chapter 7 bankruptcy i