Originally Posted by Drillchart
Chapter 13 is a restructuring of debt, they would still have most of their debt but the court would indicate monthly payments that would have to be paid and the creditor and debtor would have to accept these terms.
Chapter 7 is a liquidation of ones assets. The court orders the selling of assets through a 3rd party, creditors take what they can get, debts are settled to those creditors.
Here's some links, that should help clarify:
They don't really have any assets. That's what make Chapter 7 even an option. They have very little equity in their house, saving is wiped out, a 1998 car that has 200k on it and a new car that they are upside down on. Besides furniture household stuff and clothing they really don't have much.
Mom has not been able to find work after losing her job and had to take SS at 62 and dad is only making $35k.
What makes things worse is that my wife's parents are in complete $$$ meltdown too. We're doing the best that we can to support them both.
'06 GMC SLT LBZ C/C 4X4 Summit White, Light Pewter Leather
275/65/18 Toyo Open Country A/T E rated on 18x10's -10 offset
Footwell lights, front and back
"All lights on" mod
Loungers-Driver's and Passenger's
Trans Go JR installed