What You Need to Know about Bankruptcy

Written by admin on December 27, 2013. Posted in Bankruptcy tips and tricks, Chapter 13 bankruptcy indiana, Chapter 13 bankruptcy information

Chapter 7 versus chapter 13 bankruptcy

Many people wonder what is Chapter 7 and Chapter 13 bankruptcy. Before we can go into the specifics, it is important to understand what bankruptcy is exactly. Bankruptcy is a legal status obtained by a court order that declares that a person is incapable of repaying their debts to creditors. Bankruptcy is a serious process that should not be undertaken without serious consideration. Despite this, almost 1.25 million Americans will file for bankruptcy this year. Fortunately, this is down from the 1.38 million Americans who filed last year. Some of the more famous people who have filed for bankruptcy include Mike Tyson, Willie Nelson, Elton John, Larry King, Jerry Lee Lewis, and Anna Nicole Smith.

Bankruptcy law in the United States is governed under Federal law. Specifically, bankruptcy