Bankruptcy is a legal process that is regulated by federal laws to give people that are in debt a needed fresh start. Ok, that would be most anybody; we are all in debt in one way or another. Bankruptcy cancels the debt that you owe. Bankruptcy also makes it possible so your creditors, the people that you owe money to, to get their share of the money that you can afford to pay.
There are two main types of bankruptcy, a chapter 7 and chapter 13. A chapter 7 filing is a liquidation of all of your assets. A chapter 13 is basically a restructuring of debt owed. The chapter 7 is what is referred to a straight bankruptcy whereby you liquidate everything that isn’t considered exempt. Exempt items include cars, work related tools and your basic home furnishings. Know that some property the court appointed trustee has the right to sell to try to pay off some of your debt.
Chapter 13 filing is restructuring your debt and is most preferred by people that have assets that they do not want to lose. Some debts may be partially discharged, most are still eliminated, but you enter into a repayment agreement with […]

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