Chapter 7 Bankruptcy: A Straightforward Way to Fresh Start

Chapter 7 bankruptcy is a liquidation of your non-exempt assets to pay off creditors. This type of bankruptcy is often used by individuals with low income and few assets.

• Eligibility: You must have less than $250,000 in equity on your property, be a resident of the state, and meet certain income requirements.
• Credits: You can discharge most types of credit card debt, medical bills, and personal loans. However, you may still be able to discharge student loans and taxes.

Chapter 13 Bankruptcy: A More In-depth Plan for Debt Repayment

Chapter 13 bankruptcy is a reorganization of your debt, allowing you to repay a portion of your debts over three to five years.

• Eligibility: You must have regular income and be at least 18 years old. You also need to have unsecured credit card debt that is at least $1,000 but less than $10,000.
• Credits: You can discharge most types of non-housing debts, such as medical bills and personal loans. However, you may still be able to discharge student loans and taxes.