Bankruptcy is most often the last resort for people who have nowhere to turn to and no protection against the creditors that are coming after whatever they have left. In a lot of cases, it’s a burning bridge kind of strategy. But even in the worst-case scenario, it offers you a chance to start anew. And more importantly, it pulls you out from the strain caused by constantly harassing creditors.
When you are burdened with debt and the creditors keep harassing you and asking for their money back, you might have no option but to file for bankruptcy. When you take this action, an automatic stay is ordered by the court. This stops civil lawsuits that are filed against you as well as specific collection actions that are being taken against your property by a government entity, collection agency, or a creditor.
In this article we discuss the main features and differences between the two and whether you should avail Chapter 7 or Chapter 13 for discharging your debt. If you are ever unlucky enough to get yourself in a situation of unplayable debt then filing for a Chapter 7 or Chapter 13 bankruptcy can be your …