There are two kinds of consumer Bankruptcies, Chapter 7 and Chapter 13s.
Chapter 7s deal primarily with discharging or wiping out ones unsecured debts. These are debts where the creditor does not have any collateral, such as house or a car. Unsecured debts include credit cards, medical bill and most private judgments, to name a few. A Chapter 7 though will not help you to save your home if you are behind in your payments.
Chapter 13s, on the other hand, will help you if you are in foreclosure. With these bankruptcies, your arrearage is paid off over a period of 3 to 5 years. Also, in Chapter 13s, you do not eliminate your unsecured debts at one time, like with Chapter 7s, but pay them off over time, sometimes pennies on the dollar.
Chapter 7s generally deal primarily with wiping out unsecured debts while Chapter 13s deal with saving your home or car if you are behind in your payments.
Attorney Eli Tamkin is a Cleveland bankruptcy lawyer. He has been practicing law since 1989 and in Cleveland Ohio since 1994. Since then, he has dealt with a variety of legal issues, including bankruptcy, real estate, divorce, personal injury, and probate. Many times, answering questions on bankruptcy draws on knowledge of other legal areas as well. His experience in these other areas, as well as in bankruptcy enables him to address your particular needs and to offer you advice that is applicable to your situation.