I stay up late at nights wondering whether or not to file for bankruptcy. I especially think about it when I am overwhelmed with the thought of repaying my debts.
Bankruptcy is a legal process to help the honest debtor get a fresh start in life.
There are generally two chapters of the Bankruptcy Code that are available to the common folk Chapter 7 and Chapter 13. In very simplified terms, Chapter 7 bankruptcy is a liquidation proceeding that lasts approximately four months. The Trustee may liquidate all of a debtor s non-exempt assets, i.e., everything else, to cash in order to pay off claims by unsecured creditors. Chapter 13 bankruptcy, on the other hand, is a reorganization proceeding that lasts approximately 3 to 5 years. The debtor must submit a Plan on how he proposes to pay off his creditors during this time period.