Chapter 7 is designed to eliminate unsecured debts. It discharges consumer debts such as credit cards, medical bills, and personal loans. Some debts, like parking tickets, child support, most student loans, and certain tax debt are not discharged in a chapter 7 bankruptcy case.
Chapter 13 is designed to repay your creditors and keep your assets such as your car or home based on your ability to repay your debts. It can help you eliminate your consumer debts, including tickets. It is often used to stop foreclosure on a home, stop a vehicle repossession, or get a client off of the vehicle boot list from parking tickets and other moving violations. Debtors need steady income to fund a chapter 13 repayment plan. Cases last usually from 3 to 5 years. My clients can pay back their unsecured debts as little as 10% owed, based on their income and assets.
A Chicago bankruptcy attorney from Leeders Law can help you choose which chapter is best for you.