Often called the 'liquidation chapter,' Chapter 7 is used by individuals, partnerships or corporations who have no hope for repairing their financial situation.

Chapter 13 permits the debtor to file a plan in which the debtor agrees to pay a certain percentage of future income to the Bankruptcy Court for payment to creditors.

Most of the modification programs offer little help to a homeower trying to recapture the equity that his or her home has lost.