Bankruptcy Lawyer: Chapter 7 vs 13, Costs & Debt Relief
Bankruptcy Lawyer: Chapter 7 vs 13, Costs & Debt Relief Overwhelmed by debt? Bankruptcy offers a legal fresh start — wiping out debts or restructuring them into manageable payments. This guide explains Chapter 7 vs Chapter 13, costs, and when a bankruptcy lawyer makes the difference. What Is Bankruptcy? A federal legal process that eliminates or restructures debts you can't pay. It stops collection calls, lawsuits, wage garnishments, and foreclosure immediately (automatic stay). Bankruptcy stays on your credit report 7-10 years, but most filers rebuild credit within 2-3 years. Chapter 7 vs Chapter 13 Chapter 7 (Liquidation): Wipes out most unsecured debts (credit cards, medical bills, personal loans) in 3-6 months. You may keep exempt property (home equity up to state limit, car, household items). Must pass means test (income below state median or limited disposable income). Chapter 13 (Reorganization): Repayment plan over 3-5 years. Keep all property, catch up on mortga...