A Chapter 7 bankruptcy is often called a liquidation bankruptcy. It provides the debtor with relief from all debt, with a few exceptions. A Chapter 13 bankruptcy is often called a reorganization bankruptcy. It allows the debtor to create a repayment plan, with approval of the court, to pay either a percentage or all of your outstanding debt.
No. Under a Chapter 7 bankruptcy, debt may be reaffirmed to keep property in the possession of the debtor. Under Chapter 13, the reorganization of the debt will allow for repayment of any arrears for a 3-5 year period.
The filing of either a Chapter 7 or 13 will provide the relief of an automatic stay. An automatic stay prohibits all creditors from continuing the collection efforts until authorized by the court.
I just scheduled my initial consultation to discuss filing bankruptcy? What do I need to bring with me?
-Intake Worksheet (Download here) -Recent Paystubs -Tax Returns -Monthly Budget