Chapter 7 bankruptcy vs chapter 13

Did you know that at least four United States Presidents have filed for bankruptcy? Thomas Jefferson, Ulysses Grant, William McKinley and even Abraham Lincoln all filed for bankruptcy at one point in their lives. Regardless, in 2013, bankruptcy has changed quite a bit from the days of Jefferson, Grant and Lincoln.

There are a number of different bankruptcies, and typically, it is suggested that individuals on the brink of bankruptcy get in touch with professional bankruptcy lawyers. Only professionals know the ins and outs of bankruptcy and all the bankruptcy info including information on chapter 7 versus chapter 13 bankruptcy and even give bankruptcy tips and advice.

The United States Bankruptcy Code states that in order to file chapter 13 bankruptcy, you cannot have more than $922,975 in secured debt and $305,675 in unsecured debt. Bankruptcy is a difficult process to completely understand, and more often than not only those who have gone through the process and professional lawyers truly know how bankruptcy works.

Under chapter 13 bankruptcy, you repay all or part of your debts under a three to five year repayment plan. Interestingly, certain kinds of debts like alimony, child support, student loan debts and debts incurred as a result of fraud cannot be discharged under bankruptcy.

It is possible to rebuild your credit score after a declaration of bankruptcy. It is not the end of the world, and can actually help people more than it harms them. At the end of the day, people in peril of bankruptcy should always talk to a professional rather than try to navigate the waters of bankruptcy alone. Your average Joe does not know the details of chapter 7 versus chapter 13 bankruptcy, although bankruptcy lawyers and experts do. Find out more at this site.