Chapter 7 bankruptcy, where a debtor's assets are liquidated, should be considered a last resort, and should only be filed if all other options have been explored and exhausted.
Debt Consolidation: it may be possible to avoid bankruptcy all together, as explained on our debt consolidation page.
Chapter 13 Adjustment of Debts. An individual debtor (not a corporation) who has a regular income, can, and in many cases must, file a re-organization plan under Chapter 13. For more detailed information, see our Chapter 13 page.
Chapter 11 Reorganization can be used by debtors engaged in business, including corporations, partnerships, and sole proprietorships.
Chapter 7 bankruptcy is a last resort. According to www.equifax.com, a bankruptcy can remain on your credit report for 10 years, which will impact your ability to obtain credit in the future.
You are encouraged to know your options, and discuss your situation with a bankruptcy attorney before making your decision to file Chapter 7 bankruptcy.
