Personal Bankruptcy
Bankruptcy Chapter 7 and
Chapter 13 are the two main chapters under which individuals can file personal bankruptcy.
Chapter 7 bankruptcy is a liquidation of assets while
Chapter 13 bankruptcy is
a reorganization where the debtor creates a three to five year payment plan.
The primary reasons for filing personal bankruptcy are unforeseen medical expenses, excessive credit card debt, loss of employment, and divorce. Needless to say many of these events create
not only financial difficulty but also a tremendous amount of disruption and distress in and of themselves. This makes it especially important that individuals consider all available options and bankruptcy alternatives to make sure
whatever action they settle upon is in their long term interest.
If one determines that personal bankruptcy is the best option available then one should learn more about the federal bankruptcy law. Since bankruptcy is a important decision and the law and it application to one's particular situation can be very
complicated is generally recommend that one consults with an attorney with experience in the personal bankruptcy field. If one feels comfortable with attempting the bankruptcy process
without an attorney their are online bankruptcy services
that can be of assistance. It is also possible to proceed by completing the
bankruptcy forms on one's own but this could be very confusing and one should proceed with caution.
