What type of individual bankruptcy can one file for?
Written by Debbie Joneta
When it comes to filing for bankruptcy for individuals, the choice is often betwee
Chapter 7 and 13. They are titled chapters since each one outlines the purpose as well as terms and conditions under which one can file for bankruptcy under it.
A general opinion on bankruptcy summarizes what Chapter 7 is all about. A trustee or a caretaker is appointed to overlook all your assets. Some of it will have to be handed over to the trustee. He in turn will sell this off to repay part of your debt. The laws for bankruptcy vary from state to state and this will determine how much equity in your property you will be allowed to retain. Also in this chapter, with all this done, your debt stands to be cancelled.
If you want to file for bankruptcy under Chapter 7, you should be eligible under the income restrictions that it stipulates. Also if you have already applied for Chapter 7 bankruptcy and been rejected in the past six months, then you will not be allowed to file under it. Further you will not be eligible for a discharge if you had one granted the past 8 years. This chapter is also called straight bankruptcy or liquidation.
In Chapter 13 or what is known as the wage-earner bankruptcy, you will need to outline a repayment plan. If the legal court agrees to this plan, the trustee in your case will be in charge of collecting those payments and handing it to the respective creditors. It will also be his responsibility to ensure that you stick to your repayment plan and schedule. There is a substantial trustee fee also involved which you will have to take care of. In the case of Chapter 13, some debtors will not be allowed to file under it because of certain limits within which the filing will be accepted. Since these are subject to change, you will have to talk to your lawyer about which category you will fall under. As is the case of Chapter 7, if you have been rejected in the past 6 months, you will not be able to file under Chapter 13.
A tip would be to work out a reasonable repayment plan. Being overambitious has often lead to irregular payments. This can lead to further complications. This Chapter is useful to those who see their situation as a temporary one and are confident of securing the funds to get out of it. Consulting a bankruptcy lawyer in any case is essential.
Article author
About the Author
Further reading
Further Reading
Article
Avoid Penalties Using a VAT Tax Consultant in Dubai Today
Value Added Tax has emerged as the major player in UAE's financial ecosystem thus making compliance a top priority for all businesses regardless of their size. Ensuing VAT directly influences the company's sales and the money that flows in and out, proper internal communication with the tax authorities becomes a necessity. Lots of firms that are active in the Emirates want to get the exact picture regarding the registration minimum, the tax return due dates, and how long to k
February 6, 2026
Article
How Digital Lottery Information Platforms Are Helping Users Understand Number-Based Systems
Lottery systems have been part of public culture for many years. While many people see them as simple number draws, there is actually a lot of structure behind how these systems work. Today, digital platforms are playing a big role in explaining lottery systems in a clear and responsible way. Informational communities related to TOTO are a good example of this growing trend. Instead of focusing on participation, modern readers want to understand rules, systems, and transparen
January 28, 2026
Article
Turning Unused Diabetic Supplies into Financial Support: A Practical Guide
The Quiet Surplus in the Medical Cabinet In many households across the country, a quiet accumulation happens behind the closed doors of bathroom cabinets and bedside drawers. For those living with diabetes, managing the condition is a logistical feat that involves a constant influx of sensors, test strips, lancets, and infusion sets. Because health insurance often ships these supplies in bulk, or prescriptions change unexpectedly, it is remarkably common to find oneself with
January 21, 2026
Article
Trusted Credit Repair Corpus Christi Services and Professional Credit Attorney Los Angeles Expertise for Financial Recovery
In today’s financial world, credit scores play a critical role in shaping opportunities. From securing a home loan to qualifying for better interest rates, a healthy credit profile is essential. For individuals struggling with inaccuracies, unfair reporting, or long-standing credit challenges, White Jacobs has become a trusted name offering innovative and professional solutions. Whether it’s comprehensive credit repair in Corpus Christi or the specialized services
September 13, 2025