step 3. What’s the difference between A bankruptcy proceeding & Section 13 case of bankruptcy?

step 3. What’s the difference between A bankruptcy proceeding & Section 13 case of bankruptcy?

Chapter 7 and Part thirteen personal bankruptcy show a number of parallels. Both case of bankruptcy choices are offered to individuals, and you may one another offer the chance to launch particular expenses. Both choices instantaneously demand an automated stay to save financial institutions off providing then action up against your, providing shelter inside the filing techniques.

Right here is the primary difference: A bankruptcy proceeding personal bankruptcy was a beneficial liquidation of expense, and you may Chapter 13 try a beneficial reorganization out of expense. …