What Bankruptcy Chapter is Good For You?

For individuals, there are two popular choices for bankruptcy – Chapter 7 and Chapter 13. These choices, according to federal statute, eliminate all debts except those that are deemed exempt. Chapter 13 bankruptcy makes a trustee of the court create a reasonable repayment schedule to your creditors; this is basically a mass consolidation. Deciding whether declaring bankruptcy can be hard. Unfortunately, a variety of lawyer’s specializing in bankruptcy only talk about Chapter 7 or 13 exclusively to their clients and too many of those in need take their advice and declare bankruptcy even though they really don’t need the protection. This type of advice can destroy a careless borrower. Originally, the bankruptcy option was created as a last resort. It is important to note that a bankruptcy is noted on your credit report for up to 10 years and while most lenders have their own guidelines, typically the majority do not lend to those with bankruptcies on their credit history.