What is the difference between Chapter 7 and Chapter 13 Bankruptcy?

Chapter 7 wipes out most debts, while Chapter 13 sets up repayment terms over time with all your creditors. Each type of bankruptcy outlines:

  • What debts can be forgiven
  • The length of the repayment plan
  • What assets you can keep

Figuring out which is one is right for you depends on the type of debts you have, your assets, the assets you want to keep, and your ability to repay. A bankruptcy attorney can help you with this difficult and complex task.