Filing Chapter 7 may be an option which will relieve you of your debt and help you get the fresh start you need. There are several important advantages of filing Chapter 7 bankruptcy. In fact, Chapter 7 is the most common form of bankruptcy in the United States. An individual or a joint debtor may file under Chapter 7 of the U.S. Bankruptcy Code. This process involves the liquidation of assets and the distribution of proceeds from this liquidation to creditors.
Chapter 7 bankruptcy offers immediate and complete relief of outstanding debts while Chapter 13 merely provides individuals with outstanding debt, a plan to pay back the money that they owe. In this way, Chapter 13 is known more as reorganization than a total liquidation. While the debtor may occasionally be forced into a particular kind of bankruptcy by the creditor, most often they are able to choose which chapter they prefer to file. In certain circumstances, the debtor may be forced into an involuntary bankruptcy by a creditor, but can often convert from 7 to 13 if they wish.