Find out more about Chapter 13. If you have regular income and under $250K in unsecured debt, a Chapter 13 may be right for you. That kind of bankruptcy allows you to hold on to your personal things and real estate while repaying your debts with a plan to consolidate your debt. Lasting anywhere from three to five years, this plan will allow you to be discharged from unsecured debt. Remember that if you fail to make any of the payments on time, the court may dismiss your case.
When filing for personal bankruptcy you should always be aware of your rights. Many creditors or bill collectors might tell you your debts cannot be included in a bankruptcy. Only a few debts are immune to bankruptcy. Taxes, student loans and child support would be the major ones. If you are unsure about specific types of debt, check the bankruptcy laws in your state or consult an attorney.
Before making the decision to file for bankruptcy, be sure you have considered alternative options. For example, you may want to consider a credit counseling plan if you have small debts. You might also be able to negotiate lower payments yourself, but make sure that you get written records of any debt modifications to which you agree.