LogFAQs > #948215510

I did many years ago. Hit a rough patch with some investments not panning out like they should have and some unexpected family medical expenses. I filed Chapter 13, which is essentially a reorganization where you pay back all your debts to one trustee for a period of five years as a percentage of your annual income. Then, whatever you owe after those five years is forgiven.

Most people are familiar with the Chapter 7 bankruptcy, which is the liquidation one. That one causes you to lose most fixed assets you won except for your house and primary vehicles in exchange for all your debt being erased after 3-6 months. But a Chapter 13 bankruptcy is basically consolidating all your secure debts into one manageable payment plan over five years, and then forgiving some (if not all) of your unsecured debts (i.e. credit cards, medical bills, personal loans). Keep in mind that student loans are not dischargeable in either of those scenarios.

Let me know if you want to know anything about either process.

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