More than likely you probably know someone who has filed for bankruptcy. After all, in 2009 alone there were some 1.4 million people who sought a fresh financial start.<\/p>\n
But what are the differences between the two different types of bankruptcy filings?<\/p>\n
Usually when people talk about bankruptcy, they are specifically referring to Chapter 7.<\/p>\n
Chapter 7 seeks to relieve someone from a debilitating amount of debt while liquidating as few of their possessions as possible. This is also called straight bankruptcy. Unsecured debts such as medical expenses and credit cards typically do not have to be paid back. Secured debt does, however, if the debtor intends to keep the asset securing the debt, like a car loan. This is accomplished through a reaffirmation agreement, a contract between the debtor and the lender for repayment of the loan in exchange for keeping the asset.<\/p>\n
The benefit of filing for Chapter 7 is that you are (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" More than likely you probably know someone who has filed for bankruptcy. After all, in 2009 alone there were some 1.4 million people who sought a fresh financial start. But what are the differences between the two different types of…<\/span><\/p>\n