This blog talks a lot about bankruptcy but it might be helpful to ask what bankruptcy is. It is certainly important for those struggling with debt to understand what bankruptcy is and how it can help them. For struggling consumers considering bankruptcy, it is also imperative to ensure all their questions about bankruptcy options are answered.
The purpose of bankruptcy is to help struggling consumers with a fresh financial start and for creditor repayment. There are two types of personal bankruptcy including Chapter 7 personal bankruptcy and Chapter 13 personal bankruptcy. Chapter 7 bankruptcy is an option for struggling consumers seeking to liquidate their assets and Chapter 13 bankruptcy is an option for struggling consumers seeking to reorganize their debts.
There is a dedicated bankruptcy court system throughout the country. Bankruptcy court judges make decisions related to eligibility for the different types of personal bankruptcy and debt discharges. In addition, they help the filing party with their reorganization plan or liquidate their assets and repay creditors. A bankruptcy trustee is assigned to the bankruptcy process. It is helpful to be familiar with the different eligibility requirements for the different types of personal bankruptcy.
The bankruptcy process serves as an important resource to help struggling consumers with debt relief. Depending on the circumstances, different bankruptcy options may be better situated to the filing party’s situation which is why it is useful to understand how the process works and be familiar with the details of the different types of personal bankruptcy and the relief they provide.