Personal bankruptcy

The right choice for you?

Chapter 7 and Chapter 13 are the two main avenues that individuals pursue when filing personal bankruptcy. Chapter 7 bankruptcy is a liquidation of assets while Chapter 13 bankruptcy is a reorganization of a persons debt, allowing a debtor to create a reasonable repayment plan over a three to five year period.

The most commonly cited reasons for filing personal bankruptcy are unforeseen medical expenses, excessive credit card debt, loss of employment, and divorce. Most of these circumstances are extremely disruptive to not only a persons finances, but also to their life in general. For that reason, it is extremely important that the person contemplating a personal bankruptcy consider and all available options and bankruptcy alternatives to make sure whatever action they decide to pursue is in their long term interest.

If, after careful consideration of all of the options, you determine that personal bankruptcy is the best option available to them, then one consider utilizing the services of a competent legal counsel. At the very least, one should learn as much as possible about the federal bankruptcy law and its implications. Bankruptcy is a important decision and the law and it application to one's particular situation can be very complicated. It is generally recommend that one consult with an attorney with experience in the personal bankruptcy field. If one feels comfortable with attempting the bankruptcy process without an attorney their are online bankruptcy services that can be of assistance. It is also possible to proceed by completing the bankruptcy forms on one's own but this could be very confusing and one should proceed with caution.
 

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