Thomas, Means, Gillis & Seay, P.C. - Consumer Bankruptcy Comparison

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Bankruptcy Comparison Chart

Chapter 7 vs. Chapter 13

Type of Debt	Chapter 7	Chapter 13
Undecured Debt (credit cards, medical bills, car repossession, personal loans)	Most debt is not paid back	0% to 100% paid back, depending on Plan
Secured Debt - Car	Can keep vehicle if payments current and equity position low; if kept, payments made directly to lien holder; can surrender without penalty	Missed payments paid back in plan; if car kept, payments consolidated with other debts; can surrender vehicle
Secured Debt - House	Can keep house if payments current and equity position low; if kept, payments made to mortgage company; can surrender without penalty	Late payments put in plan; main purpose of Chapter 13 is to help keep house; regular payments made to mortgage company
Secured Debt - Furniture	Can usually keep; if kept, payments made to lien holder; can turn in without penalty	If kept, late payments and regular payments in plan; can turn in without penalty.
Pending Lawsuits and Garnishments	Stopped by filing	Stopped by filing
Pending Foreclosure	Stopped by filing	Stopped by filing
Harassing Phone Calls	Stopped by filing	Stopped by filing
Length	Usually over in 4 to5 months	Lasts 3 to 5 years
Filing Fee	$299.00 paid up front	$274.00.00 paid up front
Attorney's Fee	$1,001.00 paid up front (installment agreement available as well) in Atlanta $701.00 paid up front (installment agreement available as well) in Alabama	$3,500.00 if no real estate - paid in plan - Atlanta $4,000.00 if no real estate - paid in plan - Atlanta $2,500.00 with or without real estate - Alabama
Examples	Person with several thousand dollars owed in credit card bills and/or medical bills; person facing lawsuit and garnishment arising from car repossession	Person with several months behind on home or car note facing foreclosure or repossession; payment of back taxes
Advantages	Gets rid of unsecured debt totally; case concludes in 4-5 months	Allows debtor to save house or car when behind. Attorney fees paid in plan.
Disadvantages	Attorney's fees and filing fees ($500.00) must be paid before case is filed; stays on credit report for up to ten years.	Debt is paid back in payment plan that lasts 3 to 5 years; stays on credit report for seven years.
Frequency of Filing	Debtor can file a Chapter 7 once every 8 years (calculation starts from the date of filing and not the date of discharge).	Debtor can file a Chapter 13 as often as the courts allow. If they file a Chapter 13 after a discharge from a Chapter 7 the must pay back 100% to the creditors in the Chapter 7. They may not be granted a discharge due to the fact they are only allowed one discharge every 8 years. The case will be closed instead.