Personal bankruptcy options are available for those struggling with the stress of overwhelming debt. The bankruptcy process can help reduce or eliminate debt or provide a timeline to repay debts that cannot be discharged over time and under more favorable terms.
Chapter 7 bankruptcy is one type of personal bankruptcy that can allow for the cancellation of unsecured debts, such as credit card debt and personal loans. To file for Chapter 7 bankruptcy, individuals must meet certain income requirements. Chapter 7 bankruptcy is often referred to as liquidation bankruptcy, which means that assets are liquidated to repay creditors. It is important to note, however, that as part of the Chapter 7 bankruptcy process, certain assets are exempt from the liquidation process.