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Attorney Tony Abueita, PLC
810-235-8669 702 Church Street Flint, MI 48502
Chapter 13: Chapter 13 bankruptcy is where you, under court protection, pay a portion of your bills back a little bit at a time. Your repayment plan will be based on what you can afford to pay. Once the plan payments are complete, your debt is discharged. This often results in paying a much smaller percentage of the debt through the court than what you would pay in full.
Chapter 7: Chapter 7 bankruptcy generally eliminates your unsecured debts with certain exceptions, while allowing you to review options on your secured property to determine whether keeping these debts is in your best interest. If you want to keep your car or house, you simply have to keep up with the payments. If you're buried in a bad lease or loan, you can give your car or house up if you want to with no penalties.