About Chapter 7 Bankruptcy
In Chapter 7, the bankruptcy court discharges your obligation to pay your unsecured creditors quickly – usually in about 90 days. In Chapter 13, you are required to make periodic payments over a period of either three or five years. The payments depend on your overall financial condition and often pay only a very small % of total debt. What is left at the end of the applicable time period is discharged. Most people considering bankruptcy prefer filing under Chapter 7 because they no longer have to worry about paying back their unsecured creditors but can still keep paying their secured creditors for property they want to keep.