Click Here for more debt relief options and alternatives to filing bankruptcy. Both types of bankruptcy may get rid of unsecured debts and stop foreclosures, repossessions, garnishments, utility shut-offs, and debt collection activities. Both also provide exemptions that allow people to keep certain assets. A bankruptcy stays on your credit report for 10 years, making it difficult to acquire credit, buy a home, get life insurance, or sometimes get a job. Chapter 13 Bankruptcy and Chapter 7 Bankruptcy must be filed in federal bankruptcy court.
Attorney fees are additional.
Chapter 13 allows persons with a steady income to keep property, like a mortgaged house or a car, that they otherwise might lose. After you have made all payments under the plan, you receive a discharge of your debts. Exempt property may include automobiles, work-related tools and basic household furnishings. Some of your property may be sold by a court-appointed official, a trustee, or turned over to your creditors. Debtors should be aware that there are several alternatives to chapter 7 relief.