What are the different types of bankruptcy?
Video Transcription:
There are two main types of consumer bankruptcies. There’s a Chapter 7 bankruptcy which is a discharge bankruptcy and then there’s the Chapter 13 bankruptcy which is a reorganization bankruptcy. A Chapter 7 bankruptcy, a discharge bankruptcy allows you to discharge most of your unsecured creditors such as credit cards, medical bills, charge cards, store cards versus the Chapter 13 bankruptcy, the reorganization bankruptcy allows you to force your creditors to enter into a payment plan between three and five years. That allows you to keep such things as your home, your car and also affords you a discharge at the end of your payment plan.
