Chapter 7, is also called straight
or liquidation Bankruptcy. The court
appoints a Trustee who may liquidate or sell some things that
you own to pay your creditors. Most of your debt will be canceled,
but you may choose to pay some creditors, usually to keep a car or
home in which the creditor has a lien. [11
USC �701 et seq.] |
Chapter 13 is also called Debt
Adjustment. Most of your debts are reorganized into a
single monthly payment. The payment will continue for 36 to 60
months. You do not have to repay all of your debt. You pay only as
much as you can afford, but the minimum payment may be affected by
property you want to keep. When you complete the payments, debt not
paid is discharged. [11
USC �1301 et seq.]
|
