Posted by on Aug 22, 2012 in Law | 0 comments

In today’s economy, it is not uncommon for individuals and families to find themselves struggling to maintain finances that are straining under the burden of unmanageable amounts of debt. Although it is often seen in only negative terms, filing for consumer bankruptcy can actually give individuals and families a constructive avenue for organizing their debt into manageable terms and regaining control of their finances. Debt can affect every part of your life, from adversely affecting your credit history to complicating essential tasks like providing for yourself or your family. While filing for bankruptcy will appear on your credit history, it is often the best method for escaping aggressive creditors and starting over.

Types of Consumer Bankruptcy

The United States has a Bankruptcy Code that outlines different classifications of bankruptcy through Chapters, which are in place to allow individuals as well as organizations to file. The two Chapters that someone could file under for consumer bankruptcy are as follows:

  • Chapter 7 provides a way for both businesses and consumers to repay significant debt by liquidating assets in order to pay off creditors quickly
  • Chapter 13 the court creates a bankruptcy repayment plan over three to five years, allowing the filing individual to pay off their debt in periodic installments
  • Each form of bankruptcy has certain benefits and disadvantages. For instance, Chapter 7 quickly eliminates debt, but may require you to sell possessions you would rather keep. Chapter 13 might enable you to retain possession of your property, but may not eliminate your debt for several years.

Getting out of Debt

If you are struggling with large amounts of debt and are unsure of how to file for bankruptcy, or if you have any questions about the United States Bankruptcy Code, you should contact an experienced bankruptcy lawyer. They can answer any queries you may have about your eligibility for filing under certain Chapters and can ensure that you regain control of your finances.

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