Those people who are facing financial crisis due to lots of debt can undergo a legal process known as bankruptcy. Filing for bankruptcy could help you get a financial new beginning.
However, if you decide to seek bankruptcy relief you should fully understand the consequences. While you can do the process yourself it is much easier to hire a reliable legal practitioner to complete the process for you.
Personal bankruptcy processes give you two choices. There is Chapter 7 and Chapter 13 bankruptcy. Although listed as two types, they also have some commonalities. You can even move from one to the other, if you meet particular criteria. If you file for Chapter 7, there aren’t any restrictions on the debt ceiling.
However, if you file a Chapter 13 application, an agreement must be achieved. This contract would create a best case scenario for both the collector and you. Chapter 13 is what many people with steady incomes choose but others usually choose Chapter 7.
Another type of personal bankruptcy available is Chapter 12. This type of bankruptcy can be obtained only to farmers.
Additionally, Chapter 11 is a form of bankruptcy that handles individuals with extremely large debts. Most of the time Chapter 11 is just used for corporations who require an incredibly complex process to file for bankruptcy.