Personal Bankruptcy – What It Is?

You might have placed yourself in the deep dark jungle of debts and it has become almost an impossible thing to come out of it. People like you more often tend to end up their lives due to the pressure that it delivers and the disturbance that it causes to the individuals’ lives. If the people are smart enough, then one thing that they would do is to go and file for personal bankruptcy. Personal bankruptcy is a state where the individual approaches the court and proves to the court that he is not capable of paying all the debts and that the government should do something to help him out.If an individual is in a situation as this, then personal bankruptcy is the best option. But while filing for personal bankruptcy, people rarely know that there are actually two kinds of personal bankruptcy based on the chapters explained in the bankruptcy files. Chapter 7 and chapter 13 are the two chapters that explain these two kinds.Chapter 7 bankruptcy is the type of kind that many people go for as it comes in the most crude form and is the basic form of bankruptcy. In this chapter, you sell out all your property and repay your debts according to the priority levels set by the court. Chapter 13 bankruptcy says that you don’t have to sell your property rather run it in its normal pace. Instead you have to pay a certain amount of percentage in every dollar to clear your debts.

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