Personal Bankruptcy
Personal bankruptcy is a legal process that helps individuals who cannot repay their debts. It allows them to eliminate or reorganize their debts under the protection of the bankruptcy court. There are two main types: Chapter 7, which typically wipes out most unsecured debts, and Chapter 13, which allows for a repayment plan over three to five years. Filing for bankruptcy can provide a fresh start but may impact credit scores and remain on credit reports for several years. It’s often viewed as a last resort for those overwhelmed by financial obligations.
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Personal bankruptcy is a legal process that helps individuals who are unable to repay their debts. It allows them to either eliminate or reorganize their debts under the protection of the court. There are two main types: Chapter 7, which can discharge most unsecured debts but may involve selling some assets, and Chapter 13, which enables a repayment plan over three to five years while keeping assets. Filing for bankruptcy can provide a fresh start financially, but it also impacts credit scores and can remain on a credit report for several years. It's a serious consideration for those in financial distress.