Most individuals or couples have 2 options when it comes to filing bankruptcy. They can file Chapter 7 or Chapter 13. Most people try to file Chapter 7. Provided there are no problems the Chapter 7 bankruptcy lasts only 6 months from date of filing to date of discharge. Many Chapter 7 debtors are able to keep all their assets and discharge the majority of their debt.
Chapter 13 is often more complicated. It requires the debtor to make payments to the bankruptcy court for a period of 36 to 60 months. The advantage to the Chapter 13 is that the debtor maybe able to keep all of their assets even if they are behind in their payments. Chapter 13 is often used to save house and cars from foreclosure or repossession.
more details will follow in future blogs.