Review the requirements for filing Chapter 7 and Chapter 13 bankruptcy, including income eligibility and current debt. Plus how bankruptcy impacts your credit. When you file for bankruptcy, you are seeking to eliminate or reduce the debts you owe to your creditors.

Understanding the Context

Depending on whether you file for Chapter 7 or Chapter 13 bankruptcy, you may come out... U.S. News Money: Chapter 7 vs. Chapter 13 Bankruptcy: Which Is Best for You?

Key Insights

If you’re trying to make sense of bankruptcy jargon and hoping to understand the differences between the different types of bankruptcies, particularly Chapter 7 and Chapter 13, you’ll want to read on. MSN: What are the downsides of filing for Chapter 7 without a lawyer? What are the downsides of filing for Chapter 7 without a lawyer? Morningstar: 'It feels like I'm drowning': I'm crippled by credit-card debt. Should I file for Chapter 13 bankruptcy?

Final Thoughts

'It feels like I'm drowning': I'm crippled by credit-card debt. Should I file for Chapter 13 bankruptcy? "Bankruptcy practitioners have long recognized that traditional Chapter 11 reorganizations are too complicated, too lengthy and too expensive for any but the largest businesses," writes Michael Napoli ... Bankruptcy is a legal process for relieving debt that the borrower cannot repay. It’s a measure of last resort that typically requires liquidating assets or entering a repayment plan. Bankruptcy helps people who can no longer pay their debts get a fresh start by liquidating assets to pay their debts or by creating a repayment plan.

Bankruptcy laws also protect financially troubled businesses. This section explains the bankruptcy process and laws.