What You Need to Know Before Filing For Bankruptcy

Filing for bankruptcy if often considered to be a scary, headache inducing process. But it doesn’t have to be if you know all the facts. Here is everything you need to know about bankruptcy cases in order to stay educated about the process.

The types of bankruptcy

There are three main types of bankruptcy:

Chapter 7

Chapter 7 bankruptcy is when your debts are liquidated. This means that credit card debt, personal loans, and mortgage loans are all forgiven. In order to qualify for this method, one must pass a means test that ensures they have a certain amount of income. If they do not, they may have to sell non-exempt assets– think home, cars, boats, other expensive items-