Chapter 7 and Chapter 13 Means-testing Comparison
Chapter 7 and Chapter 13 Means-testing Comparison Although filing for bankruptcy can be a frightening idea, it can provide many people who are overburdened with debt with a new lease on life and a way out of debt. In the US, Chapter 7 and Chapter 13 bankruptcy are the two most popular choices for people looking for bankruptcy relief. Every one has its own set of guidelines, advantages, and disadvantages. Means-testing, however, is an important consideration that is relevant to both. We'll examine the variations and parallels between means-testing for Chapter 7 and Chapter 13 bankruptcy in this post to help you decide which option could be most appropriate for your financial situation. I. Overview A legal procedure called bankruptcy is intended to help people or companies who are drowning in debt. In the US, Chapter 7 and Chapter 13 bankruptcy are two of the most popular forms of bankruptcy filed. Chapter 13 enables borrowers to restructure their debts and establi...