In general, a Chapter 7 bankruptcy is a comparatively quick path to a fresh start for people who just need to wipe the slate clean.  A person filing a Chapter 7 can protect assets and zero out all dischargeable debt: credit card debt, medical debt, some taxes and other debt.  Chapter 7 may also be a good option for business owners who have closed their business and want to start over, but still have insurmountable debt.

Some debtors choose Chapter 13 bankruptcy to reorganize business or personal debt, while protecting their assets.  A Chapter 13 Plan prevents foreclosure, stops vehicle repossession, and lets you catch-up those late payments over a 3 to 5 year period. Debtors in Chapter 13 bankruptcy can “cram down” or “lien strip” some secured loans and second mortgages. Additionally, the “Super Discharge” can eliminate: tax and government penalties and civil fines, older income taxes, homeowners association dues, and even some marital property settlements.