1. Application scope:
1.1 Scope of application for Chapter 7:
You have no possessions other than necessities such as furniture, apparel, etc.
After paying for essential costs of living, you have no money left, or in the worst case scenario, you cannot even meet fundamental living standards.
1.2 Scope of application for Chapter 13:
You wish to retain a substantial amount of equity in a home or other properties;
You have a steady income and can make ends meet, but you cannot meet the debt payment schedule.
Benefits of Chapter 7 versus Chapter 13:
2.1 Benefits of Chapter 7:
When all of your debts are discharged, you are shielded from creditor collection and permitted to retain your property.
Unsecured obligations are more likely to be completely discharged;
After a few months, you may be granted discharge sanction if the proceedings are swift.
2.2 Benefits of Chapter 13
A portion of your monthly income is subject to distribution by the trustee; you are protected from creditor collection for three to five years.
You retain ownership of the properties and the payment schedule may be extended;
You will have between three and five years to settle the delinquent account, as agreed upon between you and the trustee.
3. Debtors:
3.1 Debtors under Chapter 7:
Those who pass the """"means test"""" and complete a pre-filing counseling session are eligible to file for Chapter 7 Bankruptcy Protection.
3.2 Debtors under Chapter 13:
Those with unsecured debts under $360,475 and secured debts under $1,081,400.""
" - https://www.affordablecebu.com/
