About Bankruptcy and Debt Relief
Bankruptcy is a legal procedure that allows individuals or businesses to reorganize or eliminate their debts when they are unable to pay them. There are two main types of bankruptcy: Chapter 7 (liquidation) and Chapter 13 (reorganization).
Advantages of Filing Bankruptcy
- Frees up assets for other expenses and debts
- Gives you a fresh start with new credit opportunities
- Helps stop creditor harassment and lawsuits
Disadvantages of Filing Bankruptcy
- Can have serious consequences on credit scores
- May require a court-appointed trustee to manage assets
- Does not eliminate debts immediately, but rather restructures them