There are two types of bankruptcy. Chapter 13, or "reorganization," allows debtors to keep property that they might otherwise lose, such as a mortgaged house or car. Reorganization may allow a person filing for Chapter 13 to pay off a default over a period of three to five years, rather than surrender property (in many cases your home).
Chapter 7, or "straight bankruptcy," involves liquidation of all assets that are not exempt in your state. The exempt property may include items such as work-related tools and basic household furnishings, among others. Some of the your property may be sold by a court-appointed official or turned over to your creditors. You can file for Chapter 7 only once every six years.
RSS
There are two types of bankruptcy. Chapter 13, or "reorganization," allows debtors to keep property that they might otherwise lose, such as a mortgaged house or car. Reorganization may allow a person filing for Chapter 13 to pay off a default over a period of three to five years, rather than surrender property (in many cases your home).
Chapter 7, or "straight bankruptcy," involves liquidation of all assets that are not exempt in your state. The exempt property may include items such as work-related tools and basic household furnishings, among others. Some of the your property may be sold by a court-appointed official or turned over to your creditors. You can file for Chapter 7 only once every six years.
By Practicalmoneyskills.com