Chapter 7 And Chapter 13 Definitions

What is the difference between Chapter 7 and Chapter 13


Should I file Chapter 7 or Chapter 13?  See definitions below.  Call us at 812-314-8404 with your questions. We can help.

Chapter 7



  • Chapter 7 allows for total liquidation of bad debt, while allowing  you to keep the debts you want to keep and can afford to keep paying on,  such as a house or car.
  • Certain taxes, divorce joint debts, student  loan debts, etc. cannot normally be eliminated under this chapter.  
  • Garnishments will stop.

Chapter 13



  • Chapter 13 allows for liquidation of bad debt over a 36-60 month  period, payment consolidation, it allows you to get current on the debt  you may be behind on and want to keep. 
  • It can stop repossessions. You  will be able to eliminate your bad debts by paying an only the  percentage of your general debts that you can afford. 
  • You will have to  be able to make a monthly payment in order to qualify. 
  • Your income  determines the length and amount of repayment of your general debts.

Common Bankruptcy Questions Asked


Frequently Asked Questions


Will I lose all my property? 

No! The law allows you to protect $10,250 (individual) to $20,500 (joint) of personal property or other real estate.


Will I lose my home? 

No! The law allows you to  protect $19,200 (indv)- $38,600 (joint) of equity in your home. If you  are not current on your home, a Chapter 13 allows you to become current  by playing catch up on your mortgage payments. It will stop foreclosure  by making a monthly payment each month via the court, assuming that you  can afford to make a  monthly payment. 

Will all lawsuits stop, even though a judgment has been rendered against me before I file? 

Yes! Lawsuits stop. 

Can I stop my garnishment?

Yes! Once you have filed bankruptcy collections (except child support or criminal) against you must stop! 

Will the harassing creditor calls stop? 

Yes! Once you have retained my services with the $100 retainer fee, you will start referring all creditor calls to me, an Indiana Bankruptcy Attorney!


Will I ever be able to get credit again? 

Yes! Believe it or not, your  creditworthiness can improve after filing for bankruptcy, simply  because you have eliminated a lot of debt. This normally allows for an  improvement of your debt to income ratio. For example, mortgage  companies can begin to look at you as soon as 2 years after you have  filed bankruptcy. All other creditors will look at you almost  immediately after your debts have been discharged in bankruptcy. 

Can I be denied for bankruptcy? 

No! Almost everyone  qualifies for some type of bankruptcy. As long as no fraud is involved  or you do not fail to comply with what is required of you in the  bankruptcy process. 

Will I lose my tax refund or bonus? 

Depending upon the time of  the year that you file for bankruptcy, you may lose part, if not all, of  your tax refund or bonus. Generally, people do not lose all of their  refund. The positive side is that you may lose your tax refund but it  will be in exchange for all the debt that you will be eliminating.


How much does it cost to get started? 

A $100.00 retainer fee.

Call today for a free bankruptcy consultation! 

Phone: 812-314-8404
 Toll free: 866-663-7090
 Text: 812-603-8485