Bankruptcy

Bankruptcy is a process provided for under United States federal bankruptcy law by which you are entitled to a fresh start.

One of the main purposes of Bankruptcy is to give a person, who is hopelessly burdened with debt, a fresh start by wiping out his or her debts.

There are two main forms of personal bankruptcy. Chapter 7 and Chapter 13

Chapter 7 is the most common form of bankruptcy today. Chapter 7 is typically filed in a federal court where the individual or business resides, and is unable to pay back their debt. A person filing for Chapter 7 bankruptcy must prove their eligibility; this means they must typically make less than their state’s median income level. See median income level.

The federal bankruptcy law now requires anyone who wishes to file Chapter 7 or Chapter 13 to obtain a credit counseling certificate prior to filing. The purpose of credit counseling is to help potential bankruptcy filers learn about alternatives to bankruptcy.

If you filed for bankruptcy in the past, you may file again 8 years after your last discharge of bankruptcy.

A successful Chapter 7 bankruptcy results in the Chapter 7 debt discharge, which will eliminate the filer’s unsecured debt, such as:

• Unsecured Credit Cards

• Medical Bills

• Most personal loans

• Judgments

• Garnishments

• Stop Creditor Harassment

Financial Choice Network recommends you seek a bankruptcy professional to see what you would qualify for, and determine which type of bankruptcy would be best for you. For a free consultation call now, or fill out a form and we will connect you to the right provider for your specific needs!