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Chapter 7 or 13: Which is less expensive?

The economic meltdown is the major cause for people losing jobs. For this, they are unable to pay off their debt and are burdening themselves with it. In order to get out from the torment of this overwhelming debt, they choose to file bankruptcy.

Chapter 7 is considered least expensive as you do not need to pay off your debt. Chapter 13 is expensive as compared to chapter 7 as you need to repay at least 10% per dollar.

When people consider filing for bankruptcy they often choose chapter 7.

The only reason for them to choose to file bankruptcy is the financial crisis they are facing. Therefore they would opt for the least expensive option to file bankruptcy. The filer has to surrender all his nonexempt property in the court. A judge appointed trustee undertakes the property for sale and the fund accumulated from the sale items are distributed among the creditors. If you are keen to attain financial freedom, then chapter 7 is uncomplicated and gives effective result much faster.

The creditor won

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