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What is Bankruptcy?

September 3rd, 2009 by Your Financial Resource

There are two types of consumer bankruptcy.  Each is intended to help consumers in financial crisis, but the solutions offered are very different. Chapter 7 bankruptcy and Chapter 13 bankruptcy offer different forms of protection.  If you’re facing a financial crisis, a local bankruptcy attorney can help you determine whether Chapter 7 bankruptcy or Chapter 13 bankruptcy might be the right answer for you.

Schedule a free, no-obligation call with a bankruptcy attorney now. Call (877) 423-6904.

Or request a free bankruptcy case evaluation right now.

Generally speaking, Chapter 7 bankruptcy is intended to wipe the slate clean by discharging unsecured debt—debts like credit card debt, medical bills, and unsecured loans.  Chapter 13 bankruptcy, on the other hand, is intended to give a debtor time to catch up past due payments over a period of 3-5 years, while keeping secured property like houses and cars.


Since the bankruptcy law change in 2005, there have been a lot of misunderstandings about bankruptcy.  For instance, many people have been led to believe that almost no one can file for Chapter 7 bankruptcy anymore. That’s simply not true.  Although the new bankruptcy law that took effect in October, 2005 added some hoops for debtors to jump through, consumer bankruptcy attorneys and credit counseling agencies have found from the beginning that the Chapter 7 means test actually prevents very few debtors from filing under Chapter 7.  In fact, some credit counseling agencies have said that by the time most debtors come to them for the newly-required pre-filing credit counseling, they have no other realistic option!  The safet net of bankruptcy is still available to most consumers in financial crisis. 

What is is sponsored by consumer bankruptcy attorneys from across the country, and provides hundreds of pages of free consumer bankruptcy information, articles, blog posts, and other resources on its website at .’s President, Kevin Chern, is the former managing partner of the largest consumer bankruptcy law firm in the United States, and has personally filed thousands of consumer bankruptcy cases.


Although provides extensive free information about Chapter 7 and Chapter 13 bankruptcy and regular updates on bankruptcy news and developments, many consumers need help understanding how the bankruptcy laws apply in their particular circumstances and making good decisions about their next steps.  A consumer bankruptcy attorney may be the best source of that information, so makes it easy for consumers by scheduling free, no-obligation calls with local bankruptcy attorneys.


Request a free bankruptcy case evaluation right now.

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This entry was posted on Thursday, September 3rd, 2009 at 2:04 pm and is filed under Mortgages, bankruptcy, financial education. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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