There are two basic types of bankruptcy filing for individuals: Chapter 7 and Chapter 13. The latter is more inclusive; almost anyone can file for Chapter 13 bankruptcy, provided that they owe no more than $360,475 in unsecured debts and $1,081,400 in secured debts.
Chapter 7 filers, on the other hand, are "means-tested" and have to undergo a counseling session with a credit counselor. Basically, you have to be pretty much broke.
When you file for Chapter 13, you can keep the majority of your property, so home equity or other investments won't get wiped out. You get a few years of interest-free payments to a single "trustee" which handles distribution to your creditors.
In Chapter 7, much of your property is forfeit - which is why it makes more sense for people who have less to lose.
Whether you fall under Chapter 7 or Chapter 13 filing, it's also important to find a trusted bankruptcy management service or professional to help guide you through the complex legal pitfalls of the process.
Contact Steven Peck's Premier legal toll free at 1.866.999.9085 to talk to an experienced California Bankruptcy Attorney and visit us online at www.premierlegal.org.
