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Chapter 7 and Chapter 13
Chapter 7 Bankruptcy: Under Chapter 7 bankruptcy, you discharge all unsecured debts (credit cards, medical debt, debts not tied to any specific property) by liquidating your personal assets that have value exceeding an available exemption. This plan is especially attractive for people with modest incomes, who lack any significant personal property. You do run the risk of losing property in order to pay off your creditors.
Chapter 13 Bankruptcy: If you fear losing significant personal property under Chapter 7 bankruptcy, you might consider Chapter 13 bankruptcy. Working with the court under Chapter 13, you reorganize your consumer debt. This important plan will stop home foreclosure, car repossession, and any other creditor collection proceeding. To qualify for Chapter 13 bankruptcy, it must be feasible to reorganize your debts. You must act in good faith and have disposable income above your necessary living expenses.
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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code. This use of this website does not create an attorney-client relationship. Information contained on this website is provided without any warranties, express or implied.
