People who have above average income are more likely to use Chapter 13 bankruptcy rather than Chapter 7.

Question

Quizplus · Accepted Answer

This statement is true. Chapter 13 bankruptcy allows debtors with above average income to repay their debts over a period of time through a court-approved repayment plan, whereas Chapter 7 bankruptcy involves liquidation of assets to pay off debts. Those with higher incomes may not qualify for Chapter 7 or may prefer the repayment plan offered by Chapter 13.

People Who Have Above Average Income Are More Likely to Use