What is a consumer bankruptcy case? What are the differences between Chapter 7 and Chapter 13?
Chapter 7 allows you to eliminate almost all of your debt. A trustee will be appointed to determine if any of your assets should be sold. However, most Chapter 7 debtors can protect all of their assets. For debtors who make more than the state median income and fail to qualify for Chapter 7 under a series of rather complex financial tests, Chapter 13 is still available. Under Chapter 13, you pay a certain portion of your income to a trustee for a period of years from which your creditors are paid all or some of what you owe them.
