The burden of excessive medical, credit card, auto, and home debt can seem insurmountable. The toll excessive debt often places on you and your family can seem hopeless. As such, many people seek to lessen the burden by filing for personal bankruptcy. Bankruptcy can happen to anyone. There is no shame in filing for a bankruptcy; all sorts of things can lead to one. Many hard-working families find themselves in dire financial situations due to lay-offs, illnesses, and divorce. Filing for bankruptcy can halt creditor harassment, repossession, and in some instances, foreclosure.
Bankruptcy laws have changed. Many people believe that bankruptcy protection no longer exists. This is not true. Bankruptcy protection still exists. The main difference from previous laws is that, effective October 17, 2005, individuals must undergo a “means test.” The “means test” determines which chapter of bankruptcy you qualify under. Essentially, if your income falls below a certain amount you may be able to file a Chapter 7 bankruptcy. If not, you can still file under Chapter 13 Bankruptcy.
To learn more about the differences between the different types of bankruptcies:
