Bankruptcy is something that people do when they are trying to rid themselves of their debts. However, it is not something that should be done often. Instead it is something that should be done when there are no other options available. Currently, there are two different types of bankruptcy. They are classified as Chapter 7 and Chapter 13. Both of them will rid you off your debts however when looking more into them there are quite a few differences.
When filing for bankruptcy there is certain qualifications that must be met, such as income. However, once you have met the requirements and paid your fee you are basically halfway to having your clean slate – depending on which chapter you filed under. You will have some other minor things to do such as attend a state approved credit counseling class. But, many people find that this is nothing compared to the opportunity that is being provided to them.
Overall, if you go with Chapter 13 bankruptcy you should understand that it is considered to be more of a debt consolidation. You will make monthly payments on all of your debts so it may not affect your credit as much as filing Chapter 7.
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