Bankruptcy provides legal means of discharging debt and ending creditor harassment. Most filers can use Chapter 7 bankruptcy to discharge qualifying debts after completing a three- to five-year debt repayment plan, although certain debts such as child support, alimony, or restitution must still be repaid as public policy considerations require.
Individuals whose income exceeds what is eligible for Chapter 7 liquidation can seek relief under Chapter 13, commonly known as wage earner’s plan bankruptcy. This allows individuals with steady incomes to create manageable debt repayment plans through installment payments over three to five years.
There are six forms of bankruptcy – Chapter 7, Chapter 13, Chapter 11-12-13-14-15-16
In order to file for Chapter 7 and discharge your unsecured debts, you will first have to pass Part 1 of your state’s means test. This evaluates your household income by document