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Chapter
7 and Chapter 13 are
the two main chapters under which individuals can file personal
bankruptcy. Chapter 7
bankruptcy is a liquidation of assets
while Chapter 13 bankruptcy is
a reorganization where the debtor creates a three to five
year payment plan.
The primary reasons for filing personal bankruptcy are unforeseen
medical expenses, excessive credit card debt, loss of employment,
and divorce. Needless to say many of these events create
not only financial difficulty but also a tremendous
amount of disruption and distress in and of themselves. This
makes it especially important that individuals consider all
available options and bankruptcy
alternatives to make sure
whatever action they settle upon is in their long term interest.
If one determines that personal bankruptcy is the best option
available then one should learn more about the federal bankruptcy
law. Bankruptcy is a important decision and the law and
it application to one's particular situation can be very
complicated. It is generally recommend that one consult with
an attorney
with experience in the personal bankruptcy field. If one
feels comfortable with attempting the bankruptcy process
without an attorney there are online
bankruptcy services
that can be of assistance. It is also possible to proceed
by completing the bankruptcy
forms on
one's own but this could be very confusing and one should
proceed with caution.
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