Chapter 7 stays on your record for 10 years, while Chapter 13 stays for seven years. That would seem to suggest that Chapter 7 is worse for your credit score, but with Chapter 7, your debt, or at ...

Credit Consequences of Chapter 7 vs. Chapter 13 Declaring bankruptcy, in general, has a negative impact on your credit, whether you file Chapter 7, Chapter 13 or another type of bankruptcy.

The Chapter 7 bankruptcy process only starts after you complete a credit counseling course from an approved agency. “The course can be taken online, over the phone, or in person,” Tayne said.

Chapter 7 doesn’t usually provide a discharge for IRS tax debt, student loans or child support arrears. You can lose assets. This may include cash or even your home, in some cases.

Chapter 7 allows you to discharge your debts by selling non-exempt assets, whereas Chapter 13 discharges debts by creating a repayment plan and paying the debts off over three to five years.

Bankruptcy is a negative credit event, but the effect isn’t the same for everyone. Initially, Chapter 7 and Chapter 13 have the same effect on a credit score, which diminishes over time.

Chapter 7 bankruptcy can offer a financial reset, but it's not without consequences. You'll likely lose some assets, damage your credit and remain on the hook for certain debts.

They must file for Chapter 7 bankruptcy separate from their owners. As a result, the liquidation of the business under Chapter 7 results in the business ceasing to exist.

For instance, Chapter 7 liquidates a business's assets to satisfy debts. Other types, like Chapter 9 or Chapter 12, are primarily used by municipalities or family farmers and fishers, respectively.

Chapter 7 bankruptcy is the bankruptcy filing most often used by consumers. It provides protection from creditors, puts a stop to most collection efforts and can eventually wipe debts away ...

Chapter 7 bankruptcy is faster and cheaper than Chapter 13. Chapter 7 bankruptcy discharges, or erases, eligible debts such as credit card bills, medical debt and personal loans.