If you’ve lost a job or are drowning in medical bills, then calls coming in from collectors can be like salt in a wound. Their unrelenting nature may leave you searching for a solution to get them to stop. While bankruptcy can provide the type of relief that you’re looking for, you may not know whether it’s most appropriate to choose between Chapter 7 or Chapter 13.

The truth is that you don’t have much of a choice as to which type of bankruptcy to file as it’s contingent upon how much money you make. Chapter 7 bankruptcy is reserved for lower-income individuals. All but 29 percent of personal filings are this type. The rest are Chapter 13 or repayment plan ones.

There are more differences as to how debts are handled in Chapter 7 versus Chapter 13 bankruptcies.

If you file for Chapter 7 bankruptcy, then your car is likely to be repossessed or your home foreclosed upon. With Chapter 13 bankruptcy, the court may allow you to keep them provided that you make consistent payments for them.

While you’re subject to a repayment plan for Chapter 13 bankruptcy, a creditor isn’t able to go after your co-debtors for personal loans. A creditor can still go after them if you file for Chapter 7 bankruptcy, though.

If you’re an owner of nonexempt valuable property, then the trustee presiding over your Chapter 7 bankruptcy case may require you to liquidate those items at fair market value. If you file for Chapter 13 bankruptcy, then they may allow you to keep it. You’ll have to pay the replacement value for them through your bankruptcy, though.

Any past debts that you owe for student loans, child support or alimony can’t be wiped away by filing either type of bankruptcy. Restitution that you owe for a past crime generally is unable to be wiped away by filing for Chapter 7 bankruptcy, but any balance that goes unpaid during the Chapter 13 process may be able to be eliminated.

Bankruptcy is just one of many different debt relief options that individuals choose to pursue. If you decide that it’s the right option for you, then it’s important for you to know that the success of your case can depend on the quality of representation you receive from your Oshkosh bankruptcy attorney.