What is the difference between bankruptcy and a debt relief order?
Jan Meriss Alfonso Assistant at Ascent Law LLC First, bankruptcy is different from debt relief orders. A debt relief order is a legal document that helps you manage your debt without declaring bankruptcy. It may include a Chapter 7 discharge, Chapter 11 reaffirmation, or Chapter 13 reorganization. But keep in mind that neither bankruptcy or debt relief order wipe out all of your debt. Chapter 7 discharge is a debt relief order A Chapter 7 discharge is a debt relief order that can be granted once every eight years. However, there are special rules that apply if you previously had a discharge in a chapter 13 case. Once you have received a discharge, you can no longer be required to pay that debt, and you do not have to sign a reaffirmation agreement. However, secured creditors can still take your property if you do not make your payments. A Chapter 7 discharge is best for eliminating unsecured debts. While secured debts are still enforceable, it is rare for a creditor to take them....