What is the difference between Chapter 7 and Chapter 13Bankruptcy?
Chapter 7 eliminates or discharges most debts. Most credit card debt, lines of credit, bank loans, medical bills and past due accounts are discharged in Chapter 7. Chapter 7 bankruptcy is called the fresh start approach to financial recovery. Chapter 7 offers protection from harassing creditors. It stops credits from garnishing wages and attaching bank accounts. Chapter 7 allows you to keep your personal and real property, within limits. Chapter 7 is an affordable, honest alternative to your financial problems. Chapter 13 bankruptcy provides for a re-organization or consolidation of debt through reduced, affordable payments budgeted to income and living expenses. Chapter 13 stops foreclosures by allowing you to pay past due mortgage payments over a period of three to five years. Chapter 13 may allow you to restructure auto loans so that payments are more affordable. In addition, income tax debt may be re-structured. Chapter 13 bankruptcy also applies to small businesses. It allows you
