| Chapter
7 or 13
Chapter 7,
or "straight" bankruptcy, is for those people whose
monthly take-home pay is just enough (or not enough) to cover
basic living expenses such as rent, food, car insurance, etc.
In other words, there's no money left to pay non-essential debts
such as credit cards.
|
Chapter
13, sometimes called "debt consolidation" or "debt
reorganization" bankruptcy, is for those who have some money
available to pay unsecured creditors - just not enough to satisfy
everyone. In those cases, we submit a plan to the bankruptcy court
specifying just how much you can afford to pay into your case every
month. |
In
most cases, your payment plan does not need to extend for more than
36 to 40 months, and when you successfully complete all of your
plan payments, most unsecured debt you weren't able to pay will
receive a discharge. |
