The Bankruptcy Code has two chapters available to help consumers: Chapter 7 and Chapter 13.
In Chapter 7 a consumer can keep his or her home or vehicle in most circumstances after filing bankruptcy if the payments can be made as they come due. These are what are known as secured debts and some examples are mortgages, car loans, and boat loans. In these loans the security or collateral for the loan is the house, car, boat or whatever property secured the loan. Whether a consumer can file Chapter 7 depends upon his or her income. If the consumer’s monthly income is too high according to the bankruptcy guidelines the consumer must file under Chapter 13. Continue reading