Chapter 7 vs. Chapter 13
Liquidation bankruptcy
Designed for people with limited income relative to their debt. Many unsecured debts can be discharged relatively quickly, often within a few months, though certain assets may be subject to liquidation depending on your state's exemptions.
Repayment plan bankruptcy
Built for people with regular income who want to keep certain assets, such as a home, while repaying some debt through a court-approved plan, typically over three to five years.
Why some clients choose this path
Bankruptcy is a federal legal process, not a negotiation — once filed, an automatic stay generally stops most collection calls, lawsuits, garnishments, and creditor contact immediately, while your case proceeds.
It isn't the right fit for everyone, and it has real, lasting effects on your credit and certain future transactions. We'll walk through the tradeoffs honestly before you decide.
- Most collection activity halts immediately upon filing
- Many unsecured debts can be discharged entirely under Chapter 7
- Chapter 13 can let you keep a home while catching up through a structured plan
- We are a federally designated Debt Relief Agency for bankruptcy matters — see footer
Not sure if bankruptcy is right for you?
A free consultation will walk through your numbers honestly — including whether negotiation might work just as well without it.
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