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Consumer Bankruptcy



A tough economy has been overwhelming to many consumers and they are filing for consumer bankruptcy in increasing numbers. What once was discouraged as a negative stigma is now viewed as an opportunity to clear the slate and get help with a fresh start financially. Personal bankruptcy is the only answer in many individual cases. As hard as it may be to face, when financial conditions make it impossible to continue financially, it is time to call upon your consumer bankruptcy attorney. Deal with the problem now, get back on your feet and do better in the future.

Chapter 7 and Chapter 13 Bankruptcy

Of the many types of bankruptcy avenues available, two are most commonly used:

  • Chapter 7 Bankruptcy - This is the most common consumer filing. It allows the bankrupt person to retain essential property. Non-exempt property is sold and proceeds distributed to creditors, but in most Chapter 7 Bankruptcy cases there are no assets.
  • Chapter 13 Bankruptcy - Chapter 13 bankruptcy allows the individual to keep all or some of their assets and work out a schedule for repayments with future income.

Bankruptcy Laws

The general laws for bankruptcy are federal laws, and filings go into the US Bankruptcy Court under District Courts. While federal laws determine the procedures for bankruptcy, the state laws determine property rights for the individual. Most bankruptcy cases are voluntary, but some are involuntary when pressed by creditors.

Going bankrupt offers a fresh start for individuals and businesses. Credit offers will reappear again shortly after bankruptcy and should be used wisely if at all. The negative to going bankrupt is that the action will appear on credit history records for ten years. As soon as the attorney is involved in filing for bankruptcy, the individual will be able to put a halt to creditor calls and harassment.

Find a Local Chapter 7 or 13 Bankruptcy Attorney