The Basic Bankruptcy Options
Many people are turning to bankruptcy today as a method of relieving astronomically high debt and historically low incomes. The first thing that you need to know before setting out to file bankruptcy is what kind of bankruptcy you are interested in filing. This is where the chapters come in. This is meant to be a quick run down of the different chapters of bankruptcy that are avialable to filers. More in depth information about each will follow in subsequent blog posts.
Chapter 13
This is sometimes referred to as the "working man's bankruptcy". Chapter 13 is a form of bankruptcy that is intended for individuals who have regular employment but much more debt than they can pay per month. This form of bankruptcy is the most typical among individual filers. When one files Chapter 13 they must make monthly payments for up to 5 years toward creditors.
Chapter 7
Though not as popular s Chapter 13, this is the type of bankruptcy that most people are familar with. With the exception of government issued student loans this type of bankruptcy will wipe out just about everything. It is best for people who have no assets and little or no income.