Which chapter bankruptcy is right for me?

Although the bankruptcy code offers several chapters (or types) of bankruptcy, most individuals and families must choose between only two chapters: Chapter 7 and Chapter 13.

A Chapter 7 bankruptcy (also called a “liquidation”) is the simplest and quickest way to obtain a fresh start, and it is the chapter most frequently used.

Technically, in a Chapter 7 bankruptcy, the debtor’s assets become property of a trustee who is charged with selling them so that the proceeds can be distributed to the debtor’s creditors. In practice, however, most debtors do not lose any of their property. This is because of many important exemptions which are available to protect your property. [Read more…]