In Chapter 7, you ask the bankruptcy court to discharge most of the debts you owe. In exchange for this discharge, the bankruptcy trustee can take any property you own that is not exempt from collection, sell it, and distribute the proceeds to your creditors.

In Chapter 13 bankruptcy, you file a repayment plan with the bankruptcy court to pay back all or a portion of your debts over time (generally 5 years). The amount you’ll have to repay depends on how much you earn, the amount and types of debt you owe, and how much property you own.

The Chapter 7 process generally takes about 3 months, and is much less expensive than a Chapter 13.

For most people, a Chapter 7 is a much more desirable option.


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