The principal result of a Chapter 7 is the discharge of most debts. Some debts such as child support and some taxes may not be discharged. When to file a Chapter 7 and which exemptions to claim are important questions that should be discussed with an attorney. A Chapter 7 bankruptcy generally takes about 3 months to complete after filing. A person may only file a Chapter 7 once every eight years.
Chapter 13 is a type of bankruptcy used to reorganize debts. Chapter 13 requires a regular income source. The debtor must submit a plan and commit a portion of this income for payment of part or all of his or her debts. How much must be paid under the plan and how much each debtor receives usually depends upon your assets, your income and the type of debts you have. Chapter 13 bankruptcies generally take 3-5 years to complete.