Our firm handles mainly two types of bankruptcy cases.  A chapter 7 or a chapter 13.  Whats the difference?

Chapter 7

Chapter 7 cases, or what some call "liquidation" cases, is when a person or couple is looking to discharge or "get rid of" all their eligible debts.   If you make under a certain amount of income, which is determined by the "Means Test", then you would initially qualify for a Chapter 7.  Most secured and unsecured debts may be included into your bankruptcy.  However, you cannot discharge any debts that are from child support or back taxes.  Foreclosures, repossessions, judgments and past due credit card debts or bills can all be included and discharged.  

Chapter 13

Chapter 13, or a "consolidation plan" is where you pay back your creditors.  This is generally for people who wish to keep their car, have some additional assets that they would like to keep, and make enough money a month to pay something to the creditors.  During this process, we propose a "Plan" to the bankruptcy Trustee who administers the payments and pays your creditors.  Most of the time, you only have to pay back a small portion of what is owed.  This can be in the form of a 3, 4 or 5 year plan.  At the end of the plan, you still get your "discharge".