Consumer Bankruptcy

Consumer bankruptcy most often involves filing for either Chapter 7 bankruptcy or Chapter 13 bankruptcy. Each of these different methods of bankruptcy has pros and cons. For example, Chapter 7 bankruptcy has more stringent income qualification requirements and also requires the debtor to have his non-exempt assets sold. A Chapter 13 bankruptcy, on the other hand, is easier to qualify for if you have a higher income as it lets you retain all of your possessions. However, Chapter 13 will not just forgive eligible debts like a Chapter 7 will; instead, you will need to pay back some or all of those debts over a 3-5 year repayment program that your creditors must approve. Making a decision to file Chapter 7, Chapter 13 or any type of bankruptcy as a consumer is an important one and one that you shouldn't make until you are fully informed about all your options. This section contains additional details about consumer bankruptcy to help you make an informed choice.