Exploring the Pros and Cons of Chapter 7 and Chapter 13 Bankruptcy Bankruptcy is a legal process that allows individuals and businesses to restructure or eliminate their debt. It is a difficult decision to make, and it is important to understand the differences between the two most common types of bankruptcy: Chapter 7 and Chapter

Step-by-Step Guide to Filing for Chapter 7 Bankruptcy Step 1: Determine Eligibility Before filing for Chapter 7 bankruptcy, you must determine if you are eligible. To be eligible, you must pass a “means test” which compares your income to the median income of your state. If your income is below the median, you are eligible