subject: What If I Want To Learn More About Bankruptcy? [print this page] If you are starting your quest for more information on bankruptcy on the internet, you are probably having a little trouble. For as much information as there is, it is hard to sort the truth from opinion.
You may want to delve into the details of bankruptcy later but, for now, you can begin with a solid basis of information. So, here is the who, what, and how of Chapter 7 and Chapter 13:
Chapter 7 Basics
Chapter 7 is a straight bankruptcy. It eliminates large amounts of unsecured debts (medical bills, credit card debt, payday loans) while also putting a stop to wage garnishments and harassing creditor calls. Keep in mind, only people who meet the requirements can file a Chapter 7.
You must first meet the eligibility requirements of a Chapter 7, which include the Chapter 7 means test. It simply determines whether you are really able to repay your creditors or not.
Chapter 13 Basics
Chapter 13 bankruptcy is reorganization. Chapter 13 is typically for people who don't meet the requirements of a Chapter 7 or have a lot of secured creditors and property to protect. The automatic stay will keep your creditors off your back, giving you time to breath and form a great Chapter 13 plan. Chapter 13 can stop your creditors from harassing you and garnishing your wages, allowing you time to develop a good plan and a chance to get current on your debts.
You have to meet a few requirements in order to file, mostly having to do with the amount of debt you have and a few sessions of credit counseling. If keeping property is a priority of yours, Chapter 13 is probably exactly what you are looking for.
Which chapter would be best for your situation? Typically, a great bankruptcy attorney can help you figure out the right chapter to file after looking at your debts, your assets, and how you want your financial future to be.
Now that you know what the basic definition of each kind of bankruptcy is, you can have an easier time looking for more detailed information. But be carefulit is often hard to tell fact from fiction on the internet. Start your quest for information with information from the best attorneys around you. Every attorney offers a free consultation, but the highest quality attorneys want to educate you before you even seem them.
