I know that a few years back, a new law came in effect that if you declare bankruptcy, you still have to pay back. Is this true? If so, how long do I have to pay back? How does it work?
Chapter 7 is a liquidation you have your debts discharged, Chapter 13 is a payback plan for 3 to 5 years. If you own a home or have certain debts that are non-dischargeable under Chapter 7 you may file a ch 13. The new law among other things has a income test to make it harder to file a ch7. Each state has exemptions and TX and FL are very good for that I would direct you to National Consumer Law book on Bankruptcy, also go on-line to your Federal bankruptcy Court, there is a pro-se bankruptcy clerk to help you with questions also on-line for the BK Court.
