• Debt is liquidated

• Duration: 4-6 months 

• Can file every 8 years

• Ideal for individuals with: 

               Personal/medical bills

               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.