What are the different types of bankruptcy?

Filing for Bankruptcy is meant to provide individuals in financial distress some relief and a chance to start over. It is a legal procedure to discharge debt that one who will not be able to repay the debts or does not currently have the means to repay the debts.

The two most common types of bankruptcy are Chapter 7 and Chapter 13.

Chapter 7: With a Chapter 7 bankruptcy, you are not responsible for paying back the debt owed.
Chapter 13: With a Chapter 13 bankruptcy, you are required to pay back a portion of the debts that you own through a debt repayment plan.

Will I lose all of my property if I file for Bankruptcy including my house and car?

You do not lose all of your property when filing for bankruptcy. There are bankruptcy exemptions that prevent bankruptcy trustees from seizing certain property even if you file bankruptcy. Depending on the specific exemptions, you may be able to keep your house, car, clothing, jewelry and other belongings even if you file for bankruptcy.

Can I get fired from my job if I file for bankruptcy?

No. Your employers cannot discriminate against you for filing bankruptcy. Bankruptcy laws protect you against this kind of discrimination.

Will filing for bankruptcy get rid of all my debt?

No. Filing for bankruptcy will not eliminate all your debts. Some examples of debts that will not be eliminated are: some taxes, student loans, alimony and child support.

How long will filing for bankruptcy stay on my credit report?

A Chapter 7 bankruptcy remains on your credit report for ten (10) years and a Chapter 13 bankruptcy stays on your credit report for seven (7) years.

By: Stephanie Lessard Harris, Attorney at Law