Bankruptcy is a legal way to help people solve their bill problems. It’s designed for people and businesses who can’t pay their debts and need help.

Bankruptcy laws have been around since Biblical times; for a more detailed discussion, see the article "Bankruptcy and the Bible." And though the rules have changed over the past few thousand years (for example, we don’t put people in jail when they can’t pay their bills) the goal is the same — to level the playing field between people who owe money and the people to whom that money is owed.

When a person is discharged in bankruptcy, they no longer can be held personally responsible for most pre-bankruptcy debts.

There are three main types of consumer bankruptcy: Chapter 7, Chapter 11, and Chapter 13. (Chapter 12 covers family farmers, Chapter 9 is for cities and counties, and Chapter 15 concerns international bankruptcies.)

For more information about Chapter 7, Chapter 11, and Chapter 13, please take a few minutes to read through the rest of this site.

Chapter 7
Chapter 11
Chapter 13
15 Myths of Bankruptcy
The Bible and Bankruptcy
Famous People Who Filed For Bankruptcy
How to Avoid Bankrupcty

 

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