The Difference Between Chapter 7 and Chapter 13 Bankruptcy

Chapter 7 bankruptcy, also known as liquidation bankruptcy, is typically filed when an individual or couple has no assets to cover creditors. The court will sell off most of the debtor's non-exempt property to pay off creditors.

• Chapter 13 bankruptcy is usually filed by individuals who want to restructure their debt and keep certain property, such as a home or car.
• A Chapter 7 bankruptcy will close with the sale of most non-exempt assets, leaving the debtor with only disposable income for necessities like food and clothing.

Starting Over: Tips from a Harrisburg Bankruptcy Lawyer

After bankruptcy, it's essential to focus on rebuilding credit and starting over. A knowledgeable attorney can help you create a personalized plan to achieve this goal.

• "Debt consolidation may also be an option, but it's essential to weigh the pros and cons before making a decision," they add.