Bankruptcy Resources

Considering bankruptcy is never easy. Our site provides information about the bankruptcy process, as well as contacts and resources so that our visitors can make an educated decision as to whether bankruptcy is a viable option for them.

General Bankruptcy Information

Bankruptcy is a federal matter and cannot be completed in a state court. There are six types of bankruptcy, with the most common being Chapter 7 and Chapter 13, each of which is described in more detail below.

To begin the bankruptcy process, an individual usually solicits the help of a bankruptcy attorney. The attorney evaluates the individual's assets, debts, and income and determines which type of bankruptcy the individual is eligible for. A petition to file for bankruptcy is filed with the court and the individual must complete debtor education required by the court. The individual has one meeting with a trustee of the court in which he/she is asked questions related to his/her debt and assets. Provided the meeting with the trustee according to plan, all paperwork is in order, and the individual completes their debtor education, individuals receive their bankruptcy discharge within a few months, depending on the type of bankruptcy.

Chapter 7

The idea behind Chapter 7 is that an individual's assets are liquidated to pay creditors and discharge debts. Even if an individual filing for Chapter 7 does not have assets, dischargeable debts are still discharged. When filing for Chapter 7, the individual is released and no longer liable for all dischargeable debts. The process usually takes a few months.

Chapter 13

Chapter 13 is designed for an individual that has a regular source of income and allows the individual to keep certain assets by devising an repayment plan to creditors. Repayment plans are based on the individual's income and usually last between three and five years. A discharge is not reeived until the repayment plan is completed. There are usually more debts eliminated through Chapter 13 than through Chapter 7.

Dischargeable Debts

As mentioned above, not all debts are dischargeable, or can be forgiven. Debts such as credit cards, business debts, and personal loans can all be discharged. Debts such as taxes, tax liens, student loans, condo association fees, alimony, and child support cannot be discharged.