Still, these loans may provide certain tax advantages that are not available with other kinds of credit. A bankruptcy stays on your credit report for 10 years, making it difficult to acquire credit, buy a home, get life insurance, or sometimes get a job. However, it is a legal procedure that offers a fresh start for people who can't satisfy their debts. Individuals who follow the bankruptcy rules receive a discharge-a court order that says they do not have to repay certain debts. Each must be filed in federal bankruptcy court.
Attorney fees are additional.
Top More on Bankruptcy Chapter 13 allows persons with a steady income to keep property, like a mortgaged house or a car, that they otherwise might lose. After you have made all payments under the plan, you receive a discharge of your debts. Known as straight bankruptcy, Chapter 7 involves liquidation of all assets that are not exempt. Exempt property may include automobiles, work-related tools and basic household furnishings. You can receive a discharge of your debts through Chapter 7 only once every six years.