Bankruptcy Basics

Bankruptcy Southern District NY

There are two main kinds of consumer bankruptcy: Chapter 7 and chapter 13. Each will help in a financial crisis, and each has a different way of solving money problems.

Chapter 7 bankruptcy, or liquidation, is the most common. A Chapter 7 bankruptcy won’t get rid of all debts but is very good at eliminating unsecured debts such as credit cards, medical bills, old utility bills, signature loans, etc. Chapter 7 cases proceed fairly quickly, generally completing in just a few months. If you choose chapter 7, you will completea fairly lengthy bankruptcy petition. Many of the questions are asked more than once, in different sections, in different ways. But, generally, the petition requires that you list all of your assets and all of your debts, disclose your income and expenses and significant legal and financial events such as recent windfalls and losses, transfers of assets, marriages and past addresses.