Bankruptcy is a good option for anyone who is having serious financial problems. If a person is having the type of financial issues that result in bills never getting paid or always paid late, it can be pretty easy to get caught up with revolving debt, past due fees and interests, since all pile up very quickly. Taking advantage of the current bankruptcy law is a way to resolve those debts, but there are a couple of very different types of bankruptcy to consider.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is the most commonly filed kind of bankruptcy today because with it, the debts are completely discharged, which means that they are essentially erased. Chapter 7 bankruptcy can include nearly all kinds of revolving debt, but certain kinds such as child support debt, tax debt and student loan debt cannot be eliminated under the terms of this kind of bankruptcy; however, the vast majority of credit card debt can be eliminated. For many people, this can give them almost total relief from their overwhelming debt. In a chapter 7 bankruptcy, none of the debt has to be paid back, but in a chapter 13 bankruptcy things are completely different.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy is unique because is it not a debt discharge like the chapter 7 bankruptcy is. People who are able to pay their debts, but who have fallen behind in payments, may find this to be a good option. Chapter 13 bankruptcy allows people to retain more of their personal property, such as multiple cars, multiple homes and any amount of property, which makes it another reason that people may choose it instead of chapter 7 bankruptcy. As long as the person filing the bankruptcy is willing and able to forge new agreements with their creditors, they can keep nearly anything they want.
To learn more about bankruptcy law and which type might be right for you, consider calling Thompson and Deveny, who are experienced bankruptcy attorneys offering free consultations for people who are interested in chapter 7 or chapter 13 bankruptcy. Find them at website.
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