The Debt River journey

What is Bankruptcy?

Bankruptcy is a legal process designed to help individuals and businesses eliminate or repay their debts under the protection of the bankruptcy court. It provides a structured way to resolve overwhelming financial burdens and start anew.

Types of Bankruptcy

• Chapter 7 Bankruptcy: Also known as liquidation bankruptcy, it involves selling non-exempt assets to pay off debts. Most unsecured debts are discharged, offering a fresh start.

• Chapter 13 Bankruptcy: Known as reorganization bankruptcy, it allows individuals to create a repayment plan to pay off debts over three to five years. This option is suitable for those with a steady income.

Benefits of Bankruptcy

• Debt Discharge: Eliminate most or all of your unsecured debts, such as credit card balances, medical bills, and personal loans.

• Automatic Stay: Immediately stop creditor harassment, wage garnishments, and foreclosure actions with an automatic stay.

• Fresh Financial Start: Bankruptcy provides a chance to rebuild your financial life from scratch.

• Legal Protection: Gain legal protection from creditors while you work through the bankruptcy process.