Both primary types of personal bankruptcy protection, Chapter 7 and Chapter 13 bankruptcy, and including any type of bankruptcy relief, serves as a resource to help struggling consumers protect what they care about a enjoy a fresh financial start. The automatic stay that is associated with both types of personal bankruptcy protections, as well as business bankruptcies, can help provide valuable breathing room for the struggling consumer while they seek bankruptcy relief.
Facing foreclosure can be alarming and even terrifying, which is why those facing the uncertainty of losing their home should be familiar with the legal protections available to them. Chapter 13 bankruptcy may be one option that may be able to help protect a family home.
Personal bankruptcy options can help with the many concerns those facing overwhelming debt face. Those with overwhelming debt are also likely facing a significant amount of stress related to their debts, especially if they are facing the foreclosure process and the prospect of losing their family home.
Chapter 13 bankruptcy is a personal bankruptcy option that allows the filing party to repay creditors according to a repayment plan developed with the help of the bankruptcy court. It differs from Chapter 7 personal bankruptcy because it does not involve the liquidation of assets but it is also important to keep in mind that it helps the filing party reorganize their debts so the amount they have to repay will also be worked out with the help of the bankruptcy court.