Bankruptcy is front-page news in these difficult economic times. The once invincible GM slipped into bankruptcy. The Undisputed Master of Bankruptcy, Donald Trump, filed yet again earlier this year. And the government bailed out financial services powerhouses – like AIG, called "too big to fail" – to keep them out of bankruptcy.
No such luck for individuals, of course. They're allowed to fail. And not surprisingly, as unemployment rises, so are personal bankruptcies.
If you're considering filing, you should take some comfort in knowing you're not alone. But it's still a big decision: There are financial consequences. People feel like they failed. And filers can be judged by others.
But according to personal financial advisers, most people want to repay their debts; they don't want to declare bankruptcy. Instead, it's often a last-resort option for people who may be dealing with out-of-control health care bills or the loss of a job.
If you're thinking about filing, this Leagle EyeView provides the info you need to know.
Which Chapter Applies: 7 vs. 13[/h]As an individual, you will most likely file bankruptcy under Chapter 7or Chapter 13of the bankruptcy code.
If you have an average or above income that's steady, then you'll probably be required to use Chapter 13, because Chapter 7 is typically available only if you have little to no income. An attorney or credit counselor will be able to advise the best method for you, given your circumstan
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