What is the difference between Chapter 13 and Chapter 7?

We provide two different types of consumer bankruptcies– Chapter 7 and Chapter 13.  Chapter 7 is the “Start Fresh” bankruptcy.  It will get rid of credit card debt, medical debt, old auto repossession charges and debts from lease or apartment deficiencies.  It may also get rid of old personal income taxes (Come in to see if your taxes qualify).  Chapter 13 is like a Chapter 7 “plus”.  If you qualify for a Chapter 7, it can do everything a Chapter 7 can and more.  It may allow you to “cram down” the price of your car to its true value (rather than what you owe on the contract) and might allow you to “strip off” a 2nd mortgage and get rid of it like a credit card.  It may also allow you to pay off IRS tax debt or credit card debt at no interest.

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