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Gadson Law Group, PLLC
Chapter 7
Chapter 7 bankruptcy may also be known as liquidation bankruptcy, individual liquidation, or straight bankruptcy. Essentially, all of an individual’s unsecured debts are liquidated. Chapter 7 bankruptcies are designed to wipe out your financial obligations and to offer you a clean, debt-free new financial beginning. 

Chapter 7 allows for unsecured debts to be liquidated. Your financial obligations are terminated and you can start with a fresh new beginning.
Chapter 13
Chapter 13 allows individuals with steady income to pay debts over a specific amount of time. The payment plan can range from 3-5 years, and it pays off all or part of debts. This type of bankruptcy is favored by those wanting to avoid foreclosure and repossession of automobiles.