In today's economy, it's no surprise that over one million bankruptcies were filed in 2013. Even with slow improvements, many people are still struggling to make ends meet and often face the only decision they can make. Many people have found themselves having to file more than once. Often they feel with that dark mark on their credit records, they won't be able to be financed for a vehicle. Although it is certainly not an easy process there is some light at the end of the tunnel.
What are the Two Types of Bankruptcies?There are two types of personal bankruptcy that would require you to either liquidate all your assets to pay off your creditors or make partial repayments approved by the court. The two types of bankruptcy are:
- Chapter 7 - You are ordered to liquidate all your assets that are owed to creditors.
- Chapter 13 - You'll make Court approved partial repayments.