If you are considering filing for bankruptcy, you should be aware of the options before you. There are two kinds of bankruptcy filing. One is chapter 7 bankruptcy and the other is chapter 13 bankruptcies. Most of us would be aware of chapter 11 bankruptcies as it applies to businesses and it is mentioned in the news frequently. The difference in these chapters is the way in which certain classes of assets are allowed to be retained and the others liquidated. Chapter 13 allows some assets like cars and houses to be retained. Chapter 7, on the other hand, makes it mandatory to liquidate all the assets including cars and houses except for work related tools and other minor assets. This is called a straight bankruptcy. 

The other significant difference is that chapter 13 allows people to file for bankruptcy within two to three years of the original filing whereas when you file under chapter 7, you have to wait at least seven years for filing for bankruptcy help again. The main reason that chapter 13 seems lenient is that the payback plan is structured and decided by the court. Hence, sometimes they might not be favorable terms for the person filing for bankruptcy. The best way for you when you are filing for bankruptcy is to consult an attorney and get the relevant details for you to file accordingly.  

Under the prevailing laws, persons filing for bankruptcy have to attend court hearings as mandated by the court. They cannot skip these meetings and they have to ensure that they are physically present at the time of the hearing. You would also have to satisfy a means test where you have to prove that your income is within certain limits. Filing for bankruptcy can be emotionally stressful for you and your family. Hence, it becomes more than important that you seek out the best attorney who would advise you on the right procedure. This is one experience that you would like to forget and it is also a chance for you to start afresh and begin a new life and a new beginning.