Especially in today's economy, many Americans turn to bankruptcy as a present or future solution. It is important to understand this information, facts, and laws and how it applies to you and your situation. The big difference for many Americans will be the number of the Bankruptcy Chapter that they file.

• Chapter 7 is a basic liquidation for individuals or businesses.
  
  
• Chapter 9 has to do with municipalities. .
  
  
• Chapter 11 is rehabilitation or reorganization, used mostly by business debtors, but also by individuals with substantial debts and assets.
  
  
• Chapter 12 covers family farmers and fishermen.
  
  
• Chapter 13 is rehabilitation with a payment plan for individuals who have steady income.

We will cover all of the Chapters above except Chapter 9.

Isnt it easier to go through a credit counselor than file bankruptcy?

NO. Bankruptcy costs less gets you back on your feet and fixes your credit faster. Some “non-profit” credit counselor agencies have actions against them from the IRS. They are not necessarily working with your best interests in mind—so be careful & thoroughly research any that you are considering.

MISC INFO:

• You can't be fired from your job for filing bankruptcy
• After 2 years of filing bankruptcy, banks will usually offer “secured” credit cards to help you rebuild your credit & also sometimes mortgage loans are available with interest rates as low as people's who have not filed bankruptcy.
• Loans that can't be erased with bankruptcy are: alimony, child support, personal injury/death caused due to drunken driving, student loans, or income tax owed.