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What are the advantages and disadvantages to chatper 7 and chapter 13

Elkhart, IN |

My husnand lost his job of 17 years a month ago. Due to economic cutbacks! No advance notice just went to work one morning and was terminated. We are $30,000 in debt to credit cards. I am unable to work due to health issues...we are both 60 years old and as hard as he has tried to find a job it is not happening. We are getting $390. for unemployment and that barely pays our rent and utilities. We do not own a home, we really have nothing. I have no way now to pay my bills, so we are going to be forced into bankruptcy. I have contacted all our credit card companys, only 1 responded and said we are not a hardship case they cannot help us. I have no idea what chapter 7 or 13 are and what we should do. HELP PLEASE!

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Attorney answers 2


Note that I am not licensed to practice in your state.

Since you don't have enough to live on right now, I would suggest you save all your money for paying rent and basic necessities. Forgo paying the credit cards for now. The worse they can do at this point is to sue and get a judgment against you.

It's going to be hard to find a new job probably at this juncture, but it's urgent that your husband take any job for the time being to pay the bills.


I have written FAQs discussing Chapters 7 and 13; they are on my website at You may want to check out the National Association of Consumer Bankruptcy Attorneys website at to find an attorney near you.

Brett Weiss

The Small Print: This response is for discussion purposes only. It isn't meant to be legal advice and you shouldn't treat it as such. If you want legal advice, speak with a local lawyer familiar with your state's laws who can review *all* of the facts and the law applicable to your situation.