Chapter 7, frequently referred to as a “straight bankruptcy”, provides for a discharge in approximately 4 months.
Under Chapter 13, you pay back part of your debt over a period of several years and only get your discharge at the time all payments under you Chapter 13 Repayment Plan are completed.
Under Chapter 13 you can repay your home mortgage or car loans over time, and even catch up on any current amount that is behind. However, it is important to be realistic about your ability to repay the debts.
Sometimes clients delay the inevitable by filing a Chapter 13 only to realize they cannot afford their plan payments. Under the new law, there will be serious consequences for defaulting on your Chapter 13 plan.
Be sure to contact us for a free consultation to discuss your bankruptcy options.