Bankruptcy is a very powerful debt relief option. In this post I will briefly discuss about what bankruptcy is. Whether you should file for bankruptcy or not is too broad of a topic to cover in this post.
There are several different chapters of bankruptcy, however most consumers will generally file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
A Ch. 7 Bankruptcy, also commonly known as a liquidation bankruptcy, is where all of your non protected assets are sold and used to repay your creditors. Often, nearly 95% of the cases filed in our office, all assets can be protected. In other words, your debt is discharged (you don't owe the debt anymore) and you get to keep all of your assets.
A Ch. 13 Bankruptcy, also known as a repayment plan bankruptcy, is where they look at your income and expenses. Your disposable income will be paid to the trustee on a monthly basis and the trustee will make payments to your creditors for approximately 3-5 years. If you sucessfully make all the payments your debt will once again be discharged.
Although you may file a bankruptcy petition yourself, I would highly recommend speaking with an attorney first.
