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Personal bankruptcy is an individual's legally declared inability or impairment to pay their creditors. Because bankruptcy cases fall under federal jurisdiction, they are always filed in U.S. Bankruptcy Court. The specific criteria for each case vary by state. Bankruptcy can be a long process of gathering data and court dates. Consumers still may end up paying the full balance of their debts.
In 2005, Congress passed new bankruptcy laws that made filing for bankruptcy more difficult. Consumers no longer can eliminate large debts without first qualifying through tests that determine their ability to repay the debts. The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13. Corporations and other business forms often file under Chapter 7 or Chapter 11.
Understanding Chapter 7 Bankruptcy
Chapter 7 Bankruptcy assigns someone to your account who helps sell your assets to pay off debts. Personal property such as clothing, household goods, older cars and one's home is exempt from liquidation in some states. Debtors surrender their non-exempt property to a bankruptcy trustee, who liquidates the property and distributes the proceeds to creditors.
Understanding Chapter 11 Bankruptcy
Chapter 11 Bankruptcy usually involves a corporation, business partnership, or individuals with substantial debts and assets. Business owners propose a reorganization plan to keep their business alive and pay creditors over time.
Understanding Chapter 13 Bankruptcy
Likewise, Chapter 13 Bankruptcy helps consumers with regular source of income devise a payment plan to repay their debts; however, doing so often requires hiring an attorney. Debtors retain ownership and possession of all their assets but must devote some portion of their future income to repaying their creditors.
At Credit Solutions, we require no tests or credit checks. In many cases, we negotiate with creditors to lower your outstanding credit card balances, allowing you to get out of debt quickly and begin living debt-free. Legal action seldom is required.
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Bankruptcy Results
Consider your options before making a decade commitment.
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Requires you to pay your complete outstanding balance.
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The residual effects of Bankruptcy will never go away.
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Our Results
Let us help you get out of debt.
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Faster alternative to filing bankruptcy.
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Settled accounts listed as "paid in full."
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Does not require you to go to court.
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Start Now
Get started with the leader in the debt settlement industry!
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Debt Level:
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