Bankruptcy is a federal court process designed to help consumers and businesses eliminate their debts or repay them under the protection of the bankruptcy court. In Chapter 7 bankruptcy, property is sold (liquidated) to pay off as much of your debts as possible, while leaving you with enough property to make a fresh start. In Chapter 13 bankruptcy, you repay your debts over three to five years.
Types of Bankruptcy
Alternatives to Bankruptcy
Filing for bankruptcy can help solve your debt problems, but every case is different and another course of action might make more sense given your particular set of circumstances. Before you file for bankruptcy, learn more about what alternate choices you may have to help eliminate your debt.