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The majority of the bankruptcy cases that are filed are either Chapter 7 or Chapter 13. People often ask what the difference is or which one is better, but there is no way to answer these types of questions in general. When you meet with an attorney one on one and review your specific situation, we will be able to lay out the options that are available to you.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy, also referred to as "liquidation", can provide complete forgiveness of many of your debts. Credit cards, pay-day loans and medical bills are typically all discharged, meaning you are no longer responsible to pay them. Many people who file Chapter 7 are able to keep both their car and their home. The only way to know for sure if you can quality for Chapter 7, and if it is a solution that fits your needs, is to speak with a qualified bankruptcy lawyer.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is commonly referred to as a reorganization plan because instead of discharging your debts, the bankruptcy court trustee works with you and your creditors to organize a new schedule on which you pay your debts. Qualifying for Chapter 13 can be complex depending on your situation, but it is often a very effective tool to help stop a home foreclosure, stop creditor harassments, wage garnishment and you are typically able to keep both you home and car.