Individuals (individually single, individually married and married jointly) can file either a Chapter 7 or a Chapter 13 bankruptcy. Chapter 7 and Chapter 13 bankruptcies both result in a “discharge” or “forgiveness of debt”, but through different methods.
Chapter 7 bankruptcy
Chapter 7 bankruptcy is a “straight” bankruptcy where the court makes a determination if you have any assets that can be sold to pay your creditors. Many of the assets that you own or are purchasing can be protected.
Chapter 13 bankruptcy
Chapter 12 bankruptcy is a repayment plan. It requires that you repay a portion (0-100%) of your debt over a three to five year period. A “Plan” will be developed to handle repayment of debts with a monthly amount to be paid to the court.
For more information on bankruptcy , call our office to schedule your FREE bankruptcy consultation (503) 698-4900.