he debt is from only one of the spouses, only the spouse that owes the debt needs to file bankruptcy. What is the difference between Chapters 7 and 13?
Chapter 7 is often called full bankruptcy, and Chapter 13 is often called a wage earner plan. The main difference is that in Chapter 7 the bills are wiped out right away with a court order, and you don’t pay anything on them, while in Chapter 13 you make payments for 3 to 5 years although you do not necessarily have to pay them in full. Both Chapter 7 and Chapter 13 end with a court order called the discharge that says you don’t owe the bills anymore. People often mistakenly believe you have to pay your debts in full in Chapter 13. Actually you are only required to pay what you can reasonably pay for at least 3 years to get out of debt in Chapter 13. Under Chapter 13 you can catch up on your home mortgage, renegotiate your student loans, pay back delinquent taxes over time or pay back your car. You can force a creditor to accept payments in an amount usually much lower than you are paying outside Chapter 13.
