Chapter 13 differentiates the usual three types of debts. By doing so, the debtor will be able to identify which debts must be prioritized and how much will be the additional charges such as interest rate in each classification.

 

Even though Chapter 13 seems to be more angelic than Chapter 7 in terms of their proceedings and advantages, both are still considered bad. However, opting for a Chapter 13 makes bankruptcy a little different. With all the advantages laid down, one could realize that Chapter 13 is definitely the lesser of two evils in many cases.

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