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Chapter 7

A Chapter 7 may allow you to discharge your debts (that is, the debt is discharged by the Bankruptcy Court and you do not need to repay it), while keeping most if not all of your assets. There are restrictions on income to qualify for a Chapter 7 bankruptcy based mostly on your last six-months of actual income, but also including your current or expected income.  Past due mortgages may introduce complexities if you're planning to keep the secured property, such as your house.  Thus, in some cases you may want to consider a Chapter 13 even if you qualify for a Chapter 7, as a Chapter 13 can allow you to keep certain assets that you would otherwise not be able to keep. Some debts, such as student loans and certain past due taxes are not dischargeable.