A Bankruptcy Lawyer’s Blog

Two Types of Individual Bankruptcy

Individual bankruptcy is something that single people consider when they find they are having financial trouble. There should be a full understanding of bankruptcy, and the various types before a decision is made. Knowing the differences in bankruptcy filing options will help in the making of an informed decision.

1. Chapter 13 Individual Bankruptcy This type of bankruptcy is when single people file a claim that says the can not pay off their debts, in the amount of time they are required to, with the bankruptcy court. The information that was provided such as the monthly amount paid to creditors, and the income, along with the reason that the bills fell behind. When this type of bankruptcy filing is approved the court will set up a plan for repaying the debt. This way the creditors get their money, and you don’t have to worry about additional fees, or legal actions.

2. Chapter 7 Bankruptcy This form of bankruptcy is for those that can not pay off debt, even if a repayment plan is established for them. The law makes filing for chapter 7 bankruptcies difficult. The court is the one that will make the decision as to whether or not you qualify for Chapter 7. All of the information that was provided to them is what the decision will be based on; this is why a good lawyer is important to have representing you in court.

When filing a claim for individual bankruptcy you must remember that neither you, nor your lawyer, will determine which chapter of bankruptcy is filed. Even though it is possible to ask for a chapter 13 ruling that wipes out all debts, the court can make the determination that you should file chapter 7, and repay the debts over time. This ability of the court is why the information given must be as specific as possible.

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Now, for more information about Chapter 7 or Chapter 13 Bankruptcy, visit my website for the detailed explanation and help: Bankruptcy Assistance