Summary: There are two types of bankruptcy: Chapter 7 and Chapter 13. Both help remove overwhelming debt.

Bankruptcy removes the burden of overwhelming debt from your shoulders. It can help you with unpaid bills, creditor harassment, foreclosures, repossessions, judgments, and garnishments. It can also help rebuild your credit rating over time.

Two types of bankruptcy are available to most people and businesses:

  1. Chapter 7 bankruptcy – forgives credit cards, signature loans, medical bills, and more. This is the fastest and cheapest form of bankruptcy, but you must qualify for it with a means test. The whole process after filing takes about 90 days.
  2. Chapter 13 bankruptcy – helps you catch up on past-due home mortgage or car loan and more through court-supervised debt reorganization. This bankruptcy takes 3-5 years from when you file.

Both types of bankruptcy stop lawsuits, judgments, repo’s, and garnishments.

Return to Wiki

Ready to find out whether bankruptcy can help you?

Complete our free, online debt evaluation form or call/text our office at (903) 759-5922. You can also email Carol@CrossStone.com. Find out if bankruptcy is your best option and whether it will help you.