CHAPTER 7 or Chapter 13

- Frees you from all unsecured debts such as credit cards, medical debts, utilities, phones, etc.

- If you have a house with a mortgage, or a car with a loan, you can usually  keep making payments on these debts and keep your property and possessions within reasonable limits.

- Usually, you cannot discharge state and federal taxes. You  should consult a tax attorney regarding those issues.

- Also, if you owe restitution or a fine to a court or governmental agency, those debts are not dischargeable. 

- We can discuss  your options at your initial consultation. 

- Keep in mind, bankruptcy law is structured to help you start over  with a clean slate.

 - Option for wage earners with a steady income to restructure debt so payments are more manageable.

UPSIDES

- May erase or delay part of your debt obligations

- May stop foreclosure on a home

- Spread affordable payments over a longer period of time.

DOWNSIDES

- May prolong the inevitable

- Must make monthly payments to a trustee for 3-5 years

- May have to pay back a portion of general unsecured debts