Below is an overview of the different forms of bankruptcy.  We recommend using the debt settlement way to relieve your credit card debt.  We want to provide you with all the debt relief options that are available so you can decide which method is right for you. 


Chapter 7 Bankruptcy (Straight Bankruptcy or Liquidation)

Filing for bankruptcy is not a pleasant process and should be considered your last resort.  Please be aware that your credit profile will be affected for 10 years.   In a Chapter 7 bankruptcy, you must disclose all of your debts and all of your assets. Once filed, a Chapter 7 Trustee is assigned to your case to liquidate your assets to pay your creditors. You may claim certain property as exempt from seizure under governing law. The purpose of filing Chapter 7 is to obtain discharge of your existing debts; however some debts are not dischargeable under the law.  Chapter 7 is basically used to discharge (forgive) unsecured debt; credit cards, unsecured loans, deficiency balances on repossessed automobiles, medical debts, etc. Expect to pay a much higher interest rate for mortgages, car loans, and insurance once you file for Chapter 7 bankruptcy.

Chapter 13 Bankruptcy (Reorganization)

A Chapter 13 is designed for someone with a regular income who is unable to pay their debts but would like to pay them in installments over a period of time. You set up a plan with the court to pay your creditors a portion of the money you owe them using your future income.  The court must approve your plan before the process begins.  Please note that you will be paying interest as well on this money.  Therefore, you will be paying more with this option over the long term, and your credit will be negatively affected.  By choosing Chapter 13 you may be able to keep your property, unlike Chapter 7 bankruptcy, as long as you continue to make payments.  We do not recommend this option if you can meet the requirements for debt settlement.  When you sign up for our online program we will show you the different approaches you can take to get out of debt.  


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