The two most common forms of bankruptcy are Chapter 7 and a Chapter 13 bankruptcy. Depending on your financial circumstances, income, assets and other related issues, you may only qualify for Chapter 13 and not Chapter 7. Chapter 7 is reserved for people with few assets and little or no income. It discharges unsecured debt such as credit cards.
On the other hand, with a Chapter 13 bankruptcy, filers work out a restructured payment plan and then repay their debts over a three to five year period, sometimes at a discount, to a trustee.
While this is more challenging, the
