What is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is a repayment plan. Through the Chapter 13 process you pay all or a part of your debts back. You can pay as little as 1,500 dollars or as much as 100%. The payment is based on your ability to pay and not how much you owe. Chapter 13 plans allow you to get your house and car current on payments if you are behind. You get to keep your property and assets. Student loans and taxes can be restructured.
What is Chapter 7 Bankruptcy?
Chapter 7 Bankruptcy is considered traditional bankruptcy. You discharge (eliminate) your unsecured debt completely. Unsecured debt includes but is not limited to credit cards, medical bills, back utilities, repossessed cars, and personal loans. Secured debt, such as homes and car loans, you can keep and continue to make payments if you want to keep the collateral. You get to keep you property and assets that are exempt. The process takes about 90 days to complete and only requires one appearance at the trustee’s office to review your bankruptcy paperwork.