So you’ve got some debts and you want to discharge them but you don’t know if Chapter 7 or Chapter 13 is the right option for you. I’m south Florida attorney Ali Kassahun with Tropic Legal and I get asked this question all the time. Both Chapter 7 and Chapter 13 allow individuals to protect some of their assets from creditors as exempt property and will be reported on an individual’s credit for several years to come. There are however some key distinctions between Chapter 7 and Chapter 13 that will be covered in this video. Chapter 7 bankruptcy involves a liquidation of non-exempt property to pay off debts and does not require a repayment plan. Since a Chapter 7 discharges most debt, many debtors prefer filing Chapter 7 to a Chapter 13. Some debts are not dischargeable such as student loans, child support and alimony, certain taxes and debts incurred by fraud. In general, property a debtor acquires after filing a Chapter 7 is not included in the bankruptcy estate. In order to file a Chapter 7 a debtor must qualify by meeting an income limitation. Under Chapter 13 bankruptcy, an individual re-organizes their property and submits a payment plan to pay off their debts within either 3 or 5 years. That means that an individual seeking to file Chapter 13 must have enough disposable income to fund a repayment plan. Chapter 13 may be helpful to debtors who don’t qualify for Chapter 7 but still need debt relief, to debtors who have non-dischargeable debts, or debtors who have fallen behind on a house or car payment and want to get caught up on missed payments and keep the property. So now you know the main difference between Chapter 7 and Chapter 13. I’m south Florida attorney Ali Kassahun from Tropic Legal. Thanks for tuning in and we’ll see you next time.