what are the various types of
bankruptcy with most americans living paycheck to paycheck it is no wonder that so many end up
behind on their bills and under a mountain of debt before they
know it if this sounds all too familiar to you you may be contemplating
bankruptcy in order to give yourself a fresh start however bankruptcy can be
very complicated and there are several different types of bankruptcy to choose from for instance if you’re
completely overwhelmed by your bills and don’t have a lot of assets you may want to consider a chapter 7
filing in chapter seven your possessions may be
repossessed or sold for profit that will go to your creditors but home equity retirement accounts and
personal property can be retained depending on the exemptions to which you are entitled although most
debts can be discharged or eliminated by filing chapter 7 some such as student loans or certain
taxes will likely not be discharged not everyone will
qualify for a Chapter seven to qualify you must make less than the
median income in your state or pass a test called a
means test showing that you don’t have any disposable income to pay creditors after paying your bills another option chapter 13 is often called a wage
earners bankruptcy chapter 13 is available to you if you
make too much money to qualify for Chapter seven or if you don’t want to give up the
possessions that would not have qualified for exemption in a chapter 7
chapter 13 involves creating repayment plans were in creditors are paid back
some of what they are owed repayment plans usually last between
three and five years and any debts that are included in a chapter 13 repayment plan
will be discharged at the end of this payment period both chapter 7 and
chapter 13 bankruptcies provide important protections for you as a
consumer and can help you get back on your feet
you should consult a bankruptcy attorney to help you choose
the best type of filing for your situation