| Type | Indicators | Pros | Cons |
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Heavy credit card; signature loans; medical debt. Monthly income is less than monthly living expenses. | Many debts can be forgiven outright without any repayment requirements. Only takes at few months. | Limit on how much property you can keep -- may have to give some assets to your creditors |
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Foreclosure of home; IRS levy; significant assets you don't want to lose in a Chapter 7. Monthly income usually more than monthly living expenses. | Keep your property, save home from foreclosure, and control IRS with reduced monthly payment plan -- usually for 3 - 5 years. | Limit on how extravagantly you can live; must tighten belt. Excess income each month must be paid to creditors. |