There are many reasons that people file for bankruptcy. Every situation is unique and demands a thorough analysis to help you understand what type of bankruptcy is right for you. There are primarily two types of bankruptcy for Individual’s under federal law, Chapter 7 and Chapter 13.
There are many classifications of debt in bankruptcy, including Unsecured Debt, Secured Debt, and Unsecured Priority Debt. Depending on what type of debt you have, and what you want to do with this debt, will have a determining factor in which type of bankruptcy you should file.
There are many rules and regulations with regards to which of these debts can be treated in a bankruptcy and when. Most unsecured debts will be discharged with the completion of the case. This means that you are no longer legally liable for that debt. However with secured debts, you have a choice between reaffirming that debt, or allowing it to be discharged like an unsecured debt. The choice to do so is sometimes very simple, and other times extremely complex. An experienced Bankruptcy Attorney from BillBusters can help guide you to the outcome you desire. Click on the above link to learn more about the Chapter of bankruptcy that is right for you.