- Debt is liquidated
- Duration: 4-6 months
- Can file every 8 years
- Ideal for individuals with:
Have few assets
Have mostly unsecured debt
- Pros: Debtors can get rid of debt quickly and have a new financial start wihtin 4-6 months.
- Cons: Trustee can sell non-exempt propteries to pay off debts. Record of Bankruptcy stays for 10 years on Credit Reports.
- A new repayment plan to pay off debt
- Duration: 3-5 years
- Ideal for individuals who:
Want to keep home & other assets
Have disposable income post monthly expenses
Have unexemptable assets (second home)
- Pros: Debtors can keep properties and catch up on late payments.
- Cons: Monthly payments for fixed amount to trustee for up to 5 years to pay off debt.