ch 13 bankruptcy
Which bankruptcy should I file?

File Bankruptcy But Which One?


Many people ask me which bankruptcy to file. As with many things in life, the answer really depends on your particular circumstances. Since there are actually several different kinds of bankruptcy it may be easy to eliminate a few of them since some are applicable to very specific parties, such as Chapter 12 bankruptcy which is for farmers and fishermen. So if you do not farm at least 50% of the day you can usually eliminate this one. Also there is a Chapter 9 bankruptcy but that one is for municipalities so unless you are a town or a city you probably don’t need to learn more about that one.

So for most people they should look into Chapter 7 or Chapter 13 bankruptcy. To know more about what to expect with each one click on the above links to learn the specifics of each one.

Bankruptcy is complex. Its complex for various reasons – mostly because creditors have lobbied congress to make it hard on people who are trying to eliminate their debt. The thing that is sometimes lost on law makers is that bankruptcy is actually one of the few laws enumerated by the founding fathers in the constitution. Early lawmakers knew that importance of have a safety valve on the economic ramifications of failed business endeavors. If you think about it how many people would take the risk to start a business if they knew if it failed they would be on the hook for all debts forever? This safety valve concept was even outlined in the bible centuries before because people who know – know that you do not get economic growth without risk takers trying to build a better life by taking a risk.

If you are wondering if you should do bankruptcy you owe it yourself to find out which bankruptcy to file. If you work with an experienced attorney the can guild you through the complexities of the laws and help you choose the bankruptcy that is in your best interest.

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