UNDERSTANDING BANKRUPTCY: TYPES, PROCESS, AND CONSEQUENCES

Bankruptcy is a legal process that helps individuals and businesses who are unable to pay their debts.

There are two main types of bankruptcy: Chapter 7 and Chapter 13.

Chapter 7 bankruptcy involves liquidating assets to pay off debts, while Chapter 13 bankruptcy involves creating a repayment plan.

The bankruptcy process involves filing a petition with the court, attending a meeting of creditors, and completing a financial management course.

Filing for bankruptcy can have serious consequences, such as damage to credit score and difficulty obtaining credit in the future.

However, bankruptcy can also provide relief from overwhelming debt and a fresh start for individuals and businesses.

It is important to consult with a bankruptcy attorney to determine if bankruptcy is the right option and to navigate the complex legal process.