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In a Chapter 7 Bankruptcy, all of your unsecured debt (such as credit cards or medical bills), is wiped out ("discharged"). There are a few exceptions to this, such as student loans and back taxes, but generally all unsecured debt is included.
As for secured debt, such as a car or furniture that you are still paying on, you can make the decision whether to keep ("reaffirm") the debt and keep making the payments on it, or just surrender the item to the creditor and discharge it. It is up to the creditor whether to allow you to reaffirm, but generally, as long as your payments are current at the time of filing, and you can demonstrate that you can afford the payments, the creditor will agree to let you keep the item
In a Chapter 13 Bankruptcy, you make monthly payments over a 3- to 5-year period to the Chapter 13 Trustee, who is the administrator overseeing the case. The Trustee distributes the money to your creditors over the life of the bankruptcy, so that by the end of the case, all of the listed creditors have been paid off and you walk away virtually debt-free. The amount of the payment depends on how much you owe, what kind of debt you have, and how much of the debt you will be paying back.
Almost all debts can be included in a Chapter 13 Bankruptcy, including unsecured debt (such as credit cards and medical bills), car payments, other secured debt (such as furniture that is still being paid for), past due mortgage payments, and even back taxes
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