There are two primary types of personal bankruptcy: Chapter 13 and Chapter 7. Each must be filed in federal bankruptcy court. As of April 2006, the filing fees run about $274 for Chapter 13 and $299 for Chapter 7. Attorney fees are additional and can vary.

Note that personal bankruptcy usually does not erase child support, alimony, fines, taxes, and some student loan obligations. And unless you have an acceptable plan to catch up on your debt under Chapter 13, bankruptcy usually does not allow you to keep property when your creditor has an unpaid mortgage or lien on it.

We are extremely confident that we can assist you avoid bankruptcy. All you need to do is, contact us once.

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Chapter 7 bankruptcy

In a Chapter 7 bankruptcy, you request the federal bankruptcy court to erase your debts completely. You must turn over all your non-exempt property (or its equivalent in cash) to a court-appointed trustee, who sells your property to pay back your unsecured creditors.

Advantages:

• Can remove some liens from your property.
• Filing bankruptcy puts a stay on all creditors, which eliminates garnishments, harassing calls, and credit reporting made by your creditors placed in the bankruptcy. 
  If you have no assets, then you are not required to pay anything to become debt free.
• Provides debtor with a fresh start.

Disadvantages:

• Stays on your credit for up to 10 years.
• Not a very pleasant experience: The bankruptcy trustee must approve almost every financial transaction you make while the case is open, which can be several months
• Private employers have the right to refuse employment to someone who has filed bankruptcy in the past.
• In October of 2005, Congress changed the bankruptcy laws, making fewer consumers eligible for Chapter 7
• Needs no or low income to qualify.
• You would be unlikely to qualify for most types of credit for several years.

Chapter 13 bankruptcy

In a Chapter 13 bankruptcy, you set up a court approved plan to repay your debts. Under the plan, the court determines your monthly disposable income, which you must pledge to a court appointed trustee, who in turn distributes it to your creditors for up to 5 years.

Advantages:

• If you are late on secured debt like car payment, mortgage payments, taxes, and student loans you can pay back those missed payments throughout the plan.
• Like a Chapter 7, all collections activities must cease after you file a Chapter 13 bankruptcy.
• One simple monthly payment.

Disadvantages:

• Stays on your credit report for 7 years, stays in court records for 20 years.
• The bankruptcy is still considered by future employers, lenders, ect.
• You are required to pay back a good percentage of your debt plus interest and the trustee’s monthly fee.
• Court decides your monthly payments, which could be very strict at times.
• For the next 5 years you are bound to pay all of your disposable income, which could be tough at times.

We are extremely confident that we can assist you avoid bankruptcy. All you need to do is, contact us once.For detailed information on bankruptcy, please read this FTC document: http://www.ftc.gov/bcp/conline/pubs/credit/kneedeep.shtm