The “B” word tends to send people running for the hills or into fits of tears. This however is not the case.

People tend to perceive bankruptcy as their worst option. In fact, this may not be the case. Did you know that there are different kinds of bankruptcies? Knowing which kind you might qualify for is critical to choosing a strategy to get through the process and recover as quickly as possible when it’s over.

Generally, consumer bankruptcies are either Chapter 7 or Chapter 13. In a Chapter 7 bankruptcy, you discharge the debt, meaning you don’t have to pay it back. To qualify for this kind of bankruptcy, you must past a strict means test to make sure you don’t have too many assets or an income that is too high. In a Chapter 13 bankruptcy, you’ll be assigned a trustee whose job it is to find money to pay creditors back and the court will determine how much you will have to pay to each creditor for the next five years.

By law bankruptcy attorneys are not allowed to tell you many of the things that it would be extremely beneficial to know. It is our job to know this process better than the bankruptcy attorney in order to get you the information that you need in a clear and easily understood manner.