Bankruptcy Education

People treading the heavy waters of financial distress, are often confused by the options available and just what they mean. One of the biggest misunderstandings is that credit counseling is equal to bankruptcy. This is not true, at all. The only similarity between the two is that Chapter 13 bankruptcy is a repayment plan. We explain the important details of each form of debt relief.

Bankruptcy is a legal process that gives people who can't pay their bills a chance to start over. There are two types of bankruptcy available to most individuals. Chapter 13, also called "reorganization" allows the person to keep property, which they may otherwise lose. The debtor can pay off their debts over a period of three to five years. Chapter 7, known as "straight bankruptcy...."