What are the distinguishing characteristics between a Chapter 7 and Chapter 13 bankruptcy case? There are a few worth pointing out.
Many people don't realize that a Chapter 7 bankruptcy case can last up to 3 or 4 months. In contrast, a Chapter 13 bankruptcy case can require at least a small payment to the Chapter 13 Trustee over a period of 3-5 years.
Additionally, a Chapter 13 bankruptcy case often halts a pending foreclosure sale. A Chapter 7 bankruptcy doesn't.
In a Chapter 13 bankruptcy, assets may not be removed from your possession regardless of the amount of equity you have accumulated. In a Chapter 7 bankruptcy case, you are limited as to how much equity you can have in assets and still own them.
Finally, regarding income, any individual may file a Chapter 13 bankruptcy, whereas people in the top half in terms of income may have too much income to qualify for debt relief under Chapter 7 bankruptcy.