Frequently Asked Questions about Bankruptcy

What is the difference between Chapter 7 and Chapter 13 bankruptcy? Chapter 7 bankruptcy is called a Liquidation bankruptcy and one can only file under it if his income is low enough (according to the Means Test). Chapter 7 bankruptcy writes off all debts instantly and at once, leaving the debtor “clean”. His bank cardsContinue reading

Explaining the best and worst sides of each bankruptcy Chapter

Chapter 7 Best aspects It brings instant debt relief, means the debtor receives a full discharge on all debts. The bankruptcy under Chapter 7 allows keeping some property (a cheap car, clothing, and other personal stuff), so the debtor is not left with nothing in his hands. Chapter 7 is the easiest to apply andContinue reading