Generally speaking Chapter 13 is a structured repayment of your debt while Chapter 7 is a wipe out of debt without repayment. Although Chapter 7 is referred to as a “liquidation” bankruptcy, it is rare for someone to lose property when filing under this Chapter. In fact, most people can eliminate all of their debt in a Chapter 7 while keeping their home, vehicles, and other assets. A Chapter 13 is used when one’s income level is too high for Chapter 7, to assist a debtor in getting caught up on secured debt payments (home, rental property), or to enable a debtor to restructure their debt with no risk of losing any assets regardless of equity.

Domestic support, such as child or spousal support, past-due taxes and student loan obligations are not typically discharged through bankruptcy. For a more comprehensive evaluation of your financial situation contact us at 1-877-550-0003 or visit our Frequently Asked Questions page.

Although discussing an estate plan is something most people do not want to think about, and consider irrelevant when young, the proper protections are necessary in nearly all situations, and planning early can save you and your loved ones valuable time and money in the future. We recommend clients to setup a will as a starting point, even in your early 20’s. A will is the basic starting point and something that EVERYONE should have in place. For example, you may direct the distribution of your assets (your money and property), and give your choice of guardians for your children. It will ensure your wishes are carried out, and your family is protected, beyond your lifetime.