Debt Relief: Bankruptcy

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There are two types of personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 bankruptcy and Chapter 13 bankruptcy are legal proceedings that are avaliable to a person to cope with a financial crisis. Personal bankruptcy must be filed in a federal bankruptcy court. You will have to pay a minimial fee for court and attorney costs.

What is Chapter 7 bankruptcy? What is Chapter 13 bankruptcy?

  • Chapter 7 bankruptcy:involves the liquidation of all your assets that are not exempt from the bankruptcy settlement.
  • Chapter 13 bankruptcy:is a court-ordered and approved repayment plan to your creditors.

Most financial experts agree that bankruptcy should always be the last resort used for managing your debts. Bankruptcy has long lasting results. Filing for bankruptcy remains on your credit report for a period of ten years, making it more difficult to obtain credit in the future.

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