Chapter 7
You get debt relief through liquidation (Loan forgiveness) or Loan discharged.
1) But the following debts cannot be forgiven or discharged
- Student Loans (unless undue hardship)
- 3 Years of Back Taxes
- Alimony and Child Support
2) The following Assets will be protected
- IRA-exempt up to $1 million
- Alimony and Child Support
- Pensions, Life Insurance and Annuities
Chapter 13
You get relief through adjusting your debts. This can be costly and time consuming as each loan servicer will be out to protect her interest.
Chapter 20
You get debt relief through a combination of both chapter 7 and 13.The Judge determines that. Your debt servicers play a huge role too in determining payment or re-structuring plan.
While Debts that were received through Fraud will not be discharged, those received through Negligence can be discharged. For example, if you took a loan for investment purpose and the business venture failed because you did not do your due diligence, such debt will be discharged.
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