FAQs

If you can meet the eligibility requirements for both, then you can choose which type of bankruptcy makes the most sense for you.
However, if you have secured debts of more than $922,975 and unsecured debts of more than $307, 675, you will have no choice, and you cannot use Chapter 13.

Chapter 7 bankruptcy causes most of your debts to be discharged, and in return, the bankruptcy trustee can take any property you own that is not exempt from collection. On the other hand, Chapter 13 bankruptcy requires that you file for a repayment plan with the court to pay back your debts over time.

An automatic stay goes into effect when you file for bankruptcy. To clarify, this prohibits most creditors from taking any action to collect the debts you owe them unless the court lifts the stay.

It is a federal court process. It is designed to help consumers/businesses eliminate their debts or repay them under the protection of the bankruptcy court. Bankruptcies are described as liquidation or reorganization.