Summary of Bankruptcy and Its Alternatives

During difficult times and with filings up, bankruptcy no longer carries the negative stigma it once did. Folks recognize it as an unfortunate fact of life as some of us need a "fresh start." Still, it is not a step to be taken lightly and there are ways to avoid it that should be explored in many situations. When bankruptcy becomes inevitable, however, it is important to distinguish between the two primary forms for most ordinary debtors. If you qualify by virtue of your income level and assets, Chapter 7 provides for a complete discharge of most debts. For those who have regular income, Chapter 13 allows one to keep his or her property and work out a revised repayment plan.