Question

rstanding chapter 7 and chapter 13
sort each statement according to whether it applies to chapter 7, chapter 13, or both.
automatic stay debt discharged liquidation bankruptcy payback bankruptcy
stays on credit history debtor can make payments
chapter 7 both chapter 13

Explanation:

To solve this, we recall bankruptcy concepts:

• Chapter 7: Liquidation bankruptcy (sells assets to pay debts), debt discharged (most debts eliminated), and it's a liquidation process.
• Both: Automatic stay (stops creditor actions in both), debt discharged (Chapter 7 discharges, Chapter 13 after plan), stays on credit history (both affect credit).
• Chapter 13: Payback bankruptcy (repayment plan), debtor can make payments (follows a repayment plan), and it's a reorganization with payment.

Now, sort:

• Chapter 7: Liquidation bankruptcy, Debt discharged (since Chapter 7 is liquidation, debts are discharged).
• Both: Automatic stay, Debt discharged (Chapter 13 also discharges after plan), Stays on credit history (both impact credit).
• Chapter 13: Payback bankruptcy, Debtor can make payments (repayment plan allows payments).

Answer:

• Chapter 7: Liquidation bankruptcy, Debt discharged
• Both: Automatic stay, Debt discharged, Stays on credit history
• Chapter 13: Payback bankruptcy, Debtor can make payments