TYPES OF BANKRUPTCIES
Have you determined if bankruptcy is a good or bad choice for you?
Once you decided that bankruptcy is a viable option, the next thing to consider is what type of bankruptcy you will file. There are two types of bankruptcies individuals may consider: Chapter 7, and Chapter 13. Get help filing bankruptcy.
**Remember that bankruptcy is going to negative impact your credit. Learn more about the effects of having bad credit.
Chapter 7 is great for those with a lot of unsecured debts, like credit cards. A chapter 13 forces you repay some of this money owed over a period of several years, whereas a Chapter 7 completely wipes out your debt.
Chapter 7 is also attractive because most states allow debtors to keep all of their property.
A Chapter 13 repayment plan is basically a plan that lasts three to five years, depending on the circumstances. The debtor pays a certain amount of money each month to the Chapter 13 trustee, who, in turn pay back the debtor's creditors. Typically, secured creditors are repaid 100%, and unsecured creditors get pennies on the dollar.
You can get more information about the different types of bankruptcy from Free Advice.