CHAPTER 7
Chapter 7 bankruptcy is a tool that you can use to eliminate your debt and get a fresh start. A Chapter 7 bankruptcy case lasts 4 to 6 months on average.
Chapter 7 bankruptcy allows the filer to discharge (wipe out) most, if not all, of his/her/their unsecured debt. Unsecured debt is debt that is not attached to any type of property. It may include, but is not limited to, credit card debt, unsecured loans, medical bills, and garnishments.
CHAPTER 13
Chapter 13 bankruptcy is a useful tool to restructure your debt and wipe some of it out. A Chapter 13 bankruptcy consolidates your debt into an affordable monthly payment that is paid over a course of 3 to 5 years.
Chapter 13 bankruptcy can get caught up in mortgage arrears, tax debt, delinquent car payments, child support arrears, and much more. A Chapter 13 plan can even stop foreclosure and protect your family from losing their home! It also gives filers the ability to get back repossessed cars, if done in a timely manner, and to stop wage garnishments.