Bolko Glen Rokicki

The most common type of bankruptcy filing, a Chapter 7 bankruptcy is sometimes referred to as a "liquidation." In essence, the Debtor surrenders all of his non-exempt assets to the Bankruptcy Court in order to receive a discharge on his applicable debts.

Unlike the straight discharge in a Chapter 7 Bankruptcy, a Chapter 13 bankruptcy entails the debtor maintaining a 3 or 5-year payment plan with the Bankruptcy Trustee to pay off a percentage of his debts. This type of bankruptcy can be useful to the debtor who does not qualify for a Chapter 7 bankruptcy or who wants to keep certain assets (such as a home) by paying them through the plan over the applicable time period.