Quote:
Originally Posted by fallenmuffin
See, what I said is true just not 100% accurate, lol. Some debts they clear off and some they don't I believe. Is it 5 years? I thought it was 7.
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Again, you don't know what you're talking about. Maybe you should do some research before you start stating things as though they were facts.
A chapter 13 bankruptcy is a 5 year repayment plan. The amount repaid depends on the persons income and not on how much they owe. Once the plan is completed, all remaining debts are discharged.
A chapter 7 bankruptcy is a liquidation. All debts are discharged and all secured property is repossessed. The bankruptcy will remain on your credit report and affect your credit score for 7 years.
You can't discharge tax debt or student loans in bankruptcy. That was true even before the new law was passed in 2005 though, and is true regardless of which chapter you file.