Most bankruptcy cases are filed under either Chapter 7 or Chapter 13 of the U.S. Bankruptcy Code. In this video, Attorney Brine explains the differences between these two options and explores the reasons why you might want to choose one over the other.
As Attorney Brine explains in this video, a Chapter 7 bankruptcy offers you the ability to obtain a discharge of debts without any payment plan. It is technically considered a liquidation of assets, but nearly every case is a “no asset” case in which no property is lost.
On the other hand, a Chapter 13 bankruptcy offers you the ability to obtain a discharge of debts after making some payments to creditors over several years. These payments can also be used to catch up on past due payments to stop a foreclosure or repossession.