Services

Bankruptcy Process

Declaring bankruptcy is no small matter

The long-term damage it can do to your credit is such that bankruptcy only should be considered as a last resort, after credit counseling, debt management or debt settlement have either been tried or considered.

But, if bankruptcy is the only hope to get out from debt that’s grown too large for you to pay, another question remains. Should you file Chapter 7 or Chapter 13 bankruptcy?

These two sections of the U.S. Bankruptcy Code determine how individuals can settle overwhelming debt. Will you be put on a debt repayment plan, enabling you to keep your property? Or will some of your property have to be sold to pay off what you owe? You’ll need to do your research and due diligence before choosing which is right for you.

Before considering either, be aware that the following debts cannot be discharged by Chapter 7 or Chapter 13 bankruptcy, including:

• Tax debts or government fees
• Mortgages
• Child support or alimony
• Student loans
• Auto loans