What is a Chapter 7 bankruptcy and/or a Chapter 13 bankruptcy and which one is right for me?
A Chapter 7 bankruptcy is a type of bankruptcy that can give an individual immediate relief from most, if not all, of their debts. Debts that typically cannot be discharged include but are not limited to certain tax obligations, student loans, domestic support payments, and debt incurred by fraud. A Chapter 7 bankruptcy is also called a liquidation because in certain situations, an individual’s assets could be liquidated if there is too much equity in those assets. However, most individuals do not lose anything and thus are allowed to keep their houses and cars if they are able to continue making the regular monthly payments. A Chapter 13 is a bankruptcy that allows an individual to consolidate most of their debts into one monthly payment. It stops all collection activity as soon as it is filed, including foreclosures, garnishments, repossessions and harassing phone calls. A chapter 13 is primarily used by individuals looking to stop a foreclosure or repossession, but is also used by t
