When there’s a bankruptcy, the debtors left between selecting the best chapter for recovering i.e. Chapter 7 and Chapter 13. Firebaugh & Andrews is a Westland Michigan Chapter 7 Bankruptcy Attorney who is helping the debtors to select the best option i.e. Chapter 7 for filing to discharge the debt. They understand that:
1. The chapter provides a fresh start to the debtors. They are allowed to keep a lien after the completion of the case which run for a period of three to six months;
2. The property that the debtor acquires or will after filing is excluded from the bankruptcy estate. But they become part of the estate when the debtor acquires certain property within the 180 days of filing. This happen in the cases of inherited property, property from divorce decree or settlement agreement or proceedings from a life insurance policy;
3. Unlike Chapter 13, the Seven never impose a limit on the debt of the filer might or must have. The Thirteen says that a debtor is ineligible if his or her secured or unsecured debt exceeds the debt limits;
4. The debtor is free from any court-approved repayment plan. They after being discharge of debts by filing Chapter 7 are not bound to or are responsible to repay the debt which completely contradict the Chapter 13 that pass the verdict of repayment of debt even after discharge
