Below is a brief synopsis  of the Three Types Bankruptcies:

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Chapter 7

A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.

One of the primary purposes of bankruptcy is to discharge certain debts to give an honest individual debtor a "fresh start." The debtor has no liability for discharged debts. In a chapter 7 case, however, a discharge is only available to individual debtors, not to partnerships or corporations. 11 U.S.C. § 727(a)(1). Although an individual chapter 7 case usually results in a discharge of debts, the right to a discharge is not absolute, and some types of debts are not discharged. Moreover, a bankruptcy discharge does not extinguish a lien on property.

Chapter 11
A case filed under chapter 11 of the United States Bankruptcy Code is frequently referred to as a "reorganization" bankruptcy.

An individual cannot file under chapter 11 or any other chapter if, during the preceding 180 days, a prior bankruptcy petition was dismissed due to the debtor's willful failure to appear before the court or comply with orders of the court, or was voluntarily dismissed after creditors sought relief from the bankruptcy court to recover property upon which they hold liens. 11 U.S.C. §§ 109(g), 362(d)-(e). In addition, no individual may be a debtor under chapter 11 or any chapter of the Bankruptcy Code unless he or she has, within 180 days before filing, received credit counseling from an approved credit counseling agency either in an individual or group briefing. 11 U.S.C. §§ 109, 111. There are exceptions in emergency situations or where the U.S. trustee (or bankruptcy administrator) has determined that there are insufficient approved agencies to provide the required counseling. If a debt management plan is developed during required credit counseling, it must be filed with the court.

A chapter 11 case begins with the filing of a petition with the bankruptcy court serving the area where the debtor has a domicile or residence. A petition may be a voluntary petition, which is filed by the debtor, or it may be an involuntary petition, which is filed by creditors that meet certain requirements. 11 U.S.C. §§ 301, 303. A voluntary petition must adhere to the format of Form 1 of the Official Forms prescribed by the Judicial Conference of the United States. Unless the court orders otherwise, the debtor also must file with the court: (1) schedules of assets and liabilities; (2) a schedule of current income and expenditures; (3) a schedule of executory contracts and unexpired leases; and (4) a statement of financial affairs. Fed. R. Bankr. P. 1007(b). If the debtor is an individual (or husband and wife), there are additional document filing requirements. Such debtors must file: a certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling; evidence of payment from employers, if any, received 60 days before filing; a statement of monthly net income and any anticipated increase in income or expenses after filing; and a record of any interest the debtor has in federal or state qualified education or tuition accounts.11 U.S.C. § 521. A husband and wife may file a joint petition or individual petitions. 11 U.S.C. § 302(a). (The Official Forms are not available from the court, but may be purchased at legal stationery stores or downloaded from the Internet at www.uscourts.gov/bkforms

Chapter 13
Chapter 13 is only for individuals and this includes husband & wife, with regular sources of income.  Regular sources of income include a paycheck from employment, income from the operation of a small business (not a corporation) and income from the following: social security, pensions, worker's compensation and disability.

Generally speaking, in a Chapter 13, you must contribute all of your Disposable Income (the amount left over after payroll taxes, insurance, union dues, 401K withholdings, 401K loan repayments and reasonable expenses) to the repayment of the Debt.  This amount will then determine, along with the financial analysis discussed above, the length of the commitment period for the Plan Payments.  The amount of your monthly payment and the length of time will determine the amount that each unsecured creditor (who timely files a proof of claim) will receive under the Plan.

It may still be possible for you to keep your home.  We will determine if this is the case and advise you of your options.  We will ask what your intentions are regarding not just your home, but also other secured debts for such things as cars, furniture, etc.  In some cases, we have found that the fair market value of the property is less than what is owed to the Lender who holds the First Deed of Trust.  If there is a Second Trust Deed on your property, we usually try to avoid the Second Deed of Trust and treat that creditor as a general unsecured creditor.

The financial analysis is an extremely important aspect of all Chapter 13 Plans developed by our staff.  Our attorneys will use this analysis in determining whether or not you qualify for a Chapter 13 Bankruptcy and the percentage of debt you must pay to your general unsecured creditors.

You should know that the Bankruptcy filing will remain on your credit report for ten years.  However, in today's economy, it is much easier to obtain credit after you receive your Chapter 13 Discharge than it was even five years ago, so they feel somewhat comfortable in lending to you, even though they may compensate by charging a higher rate of interest.