Filing For Personal Bankruptcy: What It All Means PDF Print E-mail
Written by Seth Furman   
Saturday, 30 January 2010 16:13
So your credit cards are maxed out, you owe several creditors money, bills are piling up and you aren't sure what to do. Bankruptcy is an option you are considering, but you don't know much about filing for personal bankruptcy. It's important you understand the two types of personal bankruptcy that exist.
by SethFurman


So your credit cards are maxed out, you owe several creditors money, bills are piling up and you aren't sure what to do. Bankruptcy is an option you are considering, but you don't know much about filing for personal bankruptcy. It's important you understand the two types of personal bankruptcy that exist.

For individuals, there are two types of bankruptcy that exist. One is Chapter 7 and the other Chapter 13. In Chapter 7 bankruptcy, your nonexempt property will be sold to pay off your debts. Chapter 13 bankruptcy is a way of working out a repayment plan to pay off your debt. Depending on your situation, one type of bankruptcy filing may be more appropriate than the other.

Chapter 7 bankruptcy is a relatively short process. It can be handled in 6 months or less from the date of the filing in most cases. It provides an opportunity for a new start and is the most common type of personal bankruptcy filed.

Chapter 7 bankruptcy is an option for individuals that can sell their nonexempt property and then use the money they make to pay off debt. After speaking with a MA bankruptcy attorney, you can decide if Chapter 7 bankruptcy is your best option.

Chapter 13 will enable you to restructure your debt and work out a repayment plan to pay off the people you owe money to. This is an option for people who may make too much money to qualify for Chapter 7 bankruptcy. The repayment plan could reduce your interest and debts owed and usually requires repayment in a three to five year period.

You should consider Chapter 13 bankruptcy if you are making money but need more time to pay off your debts. Speaking with a Chapter 13 bankruptcy attorney is the best way to determine if you situation is a good fit with this type of filing.

After reading this article, you should have a better conception of what bankruptcy entails and your various options available. The next step is to speak to a MA bankruptcy attorney to see what type of filing is the best fit for your situation.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

When you are facing the prospect of bankruptcy, educating yourself about the process is important.People often feel nervous when they find themselves in financial situations like these. Get a free bankruptcy review from MA bankruptcy attorneys. Bankruptcy is not something to take lightly, but it is not as scary as you might think.