Chapter 7 will eliminate most of your debt, including credit cards, medical bills, unsecured loans, repossession balances, and other unsecured debts. If you have a secured debt, like a home or vehicle loan, you will need to continue making the payments in order to keep that item. It will stop creditor harassment, garnishments, tax levies, foreclosures, and repossessions. To qualify for a Chapter 7, we need to show the court that you do not have enough income each month to pay your regular living expenses and pay your consumer debt. You will need to attend a hearing approximately 30 days after your case is filed. This hearing is a brief review of your bankruptcy petition. Your case will be discharged 60 days after that hearing.

Any individual with a regular monthly income can file a Chapter 13 case. A petition is filed with Bankruptcy Court that provides a plan for the repayment of your debt. A monthly payment is made to the Chapter 13 Trustee, and she in turn pays the creditors. Creditors are repaid over a three to five year period. When a Chapter 13 case is filed, the Bankruptcy Court orders your creditors to immediately stop all collection efforts. This includes conciliation court hearings, garnishments, repossessions, and foreclosures. This is a good option for those individuals that don't qualify for a Chapter 7 because of income or because they filed a Chapter 7 within the last eight years.