The two most common chapters under which bankruptcy is filed are Chapter 7 and Chapter 13. Chapter 7 is known as liquidation bankruptcy where non exempted assets are liquidated or sold off to pay your creditors. This chapter of bankruptcy typically results in discharge within 3 months of filing without making any further payments. While in Chapter 13 bankruptcy case, a court approved repayment plan is devised to clear your debts with the creditors. According to Dallas based bankruptcy law firm Recovery Law Group, partial payment based on your disposable income is made to creditors over a period of 3-5 years. Any remaining debts after the duration are discharged.
Filing for bankruptcy reflects on your credit report. A Chapter 7 bankruptcy Dallas remains on your credit report for 10 years while a Chapter 13 one appears for 7 years from the filing date. This is so because, in the former case, no repayment of debt takes place while in the latter, a certain portion of the debt is paid. If you wish to know more about the details of the workings of either chapter, contact 888-297-6023 and consult with experienced bankruptcy attorneys.