Bankruptcy 101

For many consumers bankruptcy will remain a mystery. A discharge of an individual’s debt is a release of an individual’s responsibility from certain specified types of debt. The discharge is a lasting order to the individual’s creditors that they refrain from taking legal, gathering, written or verbal communication with a debtor regarding the collection of unpaid dollars. This means that once permitted a creditor is to stop all collection activities that they would normally pursue against the debtor.

Chapter 7 Bankruptcy

Filing for Chapter 7 bankruptcy is a difficult legal process that takes time. Yes, you can file bankruptcy on our own. But with all the legal procedure involved and with a new law in place, it is better if you hire a Chapter 7 bankruptcy lawyer. Your creditors can fight you on Chapter 7; thus it is best to have a legal specialist by your side. Chapter 7 bankruptcy is fundamentally a liquidation of your non-exempt property to expend your debts.

Chapter 13 Bankruptcy

The US Congress approved a law that established a set of uniform laws to govern how bankruptcy was handled. These laws were located under a system called the bankruptcy code. In this code there are chapters that submit to various issues in bankruptcy. One such chapter deals with allowing the debtor to start a new life whilst they pay off their future debts. This bankruptcy chapter 13 is one of the popular bankruptcy laws.