When most Wayne County residents think about filing for bankruptcy, the images that come to mind are from the Chapter 7 liquidation process. They think of potentially losing some assets like a house or car that are used to secure debts, and they see their debts quickly swept away. Many are less familiar with what happens in Chapter 13 bankruptcy, even though it is an important option to consider.
An important distinction between Chapter 7 and Chapter 13 is the discharge date. This is a technical way of referring to the date on which one's debt is formally forgiven -- or at least, those debts that qualify. In Chapter 7, the discharge date typically comes around four months after the initial filing. In Chapter 13, however, the discharge date will be at least three years down the road, possibly four or five years.