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.
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.