Filing bankruptcy doesn’t necessarily mean a person can wipe out all his or her
pre-bankruptcy debt, but it does allow a person to start over, after a fashion. There are
separate chapters of the bankruptcy code for individuals and businesses. The
types of bankruptcy are named after the code chapter. Chapter 13 is for
individuals who need to reorganize. Chapter 11 is generally reserved for
businesses that would need to reorganize. Chapter 7 bankruptcy is used for the
complete elimination of debt.
Before filing bankruptcy, look at all of
the options. Bankruptcies can stay on a person’s credit report for up to 10
years. Filing bankruptcy should be a last resort to manage debt. Additionally,
once someone files bankruptcy, he or she cannot file again for an amount of time
set by the different types of bankruptcy codes.
The free
Bankruptcy Worksheet
is a good place to start for anyone considering the legal issues
surrounding personal bankruptcy or business bankruptcy. Or, you can
find a bankruptcy lawyer for legal help with credit, bankruptcy debt, and bankruptcy filing.