Carey Law Office

Specializing in Bankruptcy Relief and Getting You a Fresh Start.

We are a small family operated firm that specializes in bankruptcy relief for Chapters 7 and 13. We listen and we care! Providing real solutions to your financial problems. Stop harassing calls and judgements now and get your life back. We provide fresh starts under the bankruptcy code.

What is the difference between a Chapter 7 bankruptcy and a Chapter 13?

Chapter 7 (Straight bankruptcy) - this form of bankruptcy relief provides a discharge of most of your debts, giving the debtor an opportunity for a fresh start. Priority debts must still be paid even after a bankruptcy discharge because they are non-dischargeable in a bankruptcy (see "What debts are non-dischargeable?" below). Secured debts can be discharged if the property securing the debt is surrendered back to the creditor, or, if the payments are current on the debt, the debtor can reaffirm the debt, keep paying on it, and keep the property securing the debt.

Chapter 13 (The cramdown) - this form of bankruptcy provides relief by coming up with a plan for paying off your creditors over a 3 - 5 year plan. As long as plan payments and your payments outside the plan are kept current creditors must not harass the debtor. Certain types of debts, priority debts, must be paid in full during the life of the plan because the debts are not dischargeable in bankruptcy (see "What debts are non-dischargeable?" below). Secured debts must be paid in full during the life of the plan, or be surrendered to the creditor. Payments can be set up to catch up arrears on both Priority Debts and Secured Debts in a Chapter 13. Unsecured debts may or may not need to be paid in full depending on the income of the debtor. Unsecured debts that are not paid during the plan term receive a discharge at the end of the plan.

What determines whether I can file a Chapter 7 or a Chapter 13 bankruptcy?

The type of bankruptcy you can file is typically based...