What exactly is bankruptcy?
Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court.
Aren't there different kinds of bankruptcy?
Yes. Bankruptcies can generally be described as "liquidation" (Chapter7) or "reorganization" (Chapter 13). Liquidation bankruptcy is called Chapter 7. Under Chapter 7 bankruptcy, a consumer asks the bankruptcy court to wipe out (discharge) the debts owed. Certain debts cannot be discharged. There are several types of reorganization bankruptcy (Chapter 13). Consumers with secured debts under Full Article +
What generally happens in consumer bankruptcy cases?
In a Chapter 7 case, you file several forms with the bankruptcy court listing income and expenses, assets, debts and property transactions. There is a filing fee, which may be waived for people who receive public assistance or live below the poverty level. A court-appointed person, known as a trustee, is assigned to oversee the Full Article +
