Is Bankruptcy Right For You?

Bankruptcy is a Federal Court process intended for the elimination of consumer debt, such as overwhelming credit card debt, unpaid medical bills, and small business expenses. Generally, one is eligible for bankruptcy if their expenses exceed their income over the last six months. Bankruptcy law is focused on previous earnings, not future income.

The Federal Courts have broken Consumer Bankruptcy into two separate chapters: Chapter 7, which eliminated most debt; and Chapter 13, which creates a payment plan for the debtor to repay the debt over a period of three to five years.