Types of Bankruptcy

Chapter 7

When the average person thinks of bankruptcy they are usually thinking of Chapter 7, which includes personal bankruptcy. Under Chapter 7, most of the debtor’s unsecured debt is discharged (i.e., cancelled). You may however, be forced to sell some of your assets. Determining eligibility Abuse of bankruptcy law was a problem in the past, so …

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Chapter 13

Chapter 13 is a form of bankruptcy that permits individuals to financially reorganize their debts while under supervision by a federal bankruptcy court. It is different from Chapter 7 in that Chapter 7 eliminates most debt immediately, whereas someone who files under Chapter 13 will work out a plan to pay off some debts. Here …

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