If you have found yourself buried under mounds of debt, with very little relief in sight, bankruptcy might be a very good option. Filing for bankruptcy may help you get a financial new beginning. Needless to say, choosing to file for bankruptcy should not be a snap decision, because there are many repercussions to doing so. While you can do the process all by yourself it is much easier to hire an expert attorney to complete the process on your behalf.
Whenever you file, you can pick from two kinds of bankruptcy. There is Chapter 7 and Chapter 13 bankruptcy. While they are branded differently, they certainly share a number of the same characteristics. It's also possible to move from one to the other, should you meet specific criteria.
If you file for Chapter 7, there are no restrictions on the debt ceiling. On the other hand, if you file a Chapter 13 application, a binding agreement must be reached. This deal would produce a best case scenario for both the creditor and you. Chapter 13 is what most of the people with steady incomes select but others usually opt for Chapter 7.
Another form of personal bankruptcy available is Chapter 12. The Chapter 12 bankruptcy is just provided to farm families. In addition, Chapter 11 is a type of bankruptcy that deals with individuals with particularly large debts. More often than not Chapter 11 is just used for corporations who require an incredibly complex process to file for bankruptcy.