Nobody looks forward to filing bankruptcy, but there are times when unmanageable debt becomes too great a burden to bear. Uninsured health care expenses, an unexpected loss of income, unanticipated expenses, rising interest rates, failed business ventures and underperforming investments are just a few reasons people seek relief from debt by filing bankruptcy.

Bankruptcy may be right for you if you meet the following critations.

• You are overburdended with medical, credit card bills, ect.

• You are under great financial stress such as being garnished for exsample.

• The thought of sorting through your
  finances scares you

• If you are considering debt consolidation.

• You use credit cards to payf necccesities.

• Are billl collectors or collection agencies constantly harrassing you?

• You are unsure how much money you actually owe

There are lots of reasons people file for Chapter 7 bankruptcy. You're probably not the only one, whatever your reason is. Some common reasons for filing for bankruptcy are unemployment, large medical expenses, seriously overextended credit, and marital problems. Chapter 7 is sometimes referred to as a "straight bankruptcy." A Chapter 7 bankruptcy liquidates your assets to pay off as much of your debt as possible. The cash from your assets is distributed to creditors like banks and credit card companies.

Within four months, you will receive a notice of discharge. The record of your bankruptcy will stay on your credit report for ten years. But even that doesn't have to mean doom. Lots of Chapter 7 filers have bought homes with recent bankruptcies on their record. For many people, Chapter 7 offers a quick, fresh start.

In most cases, a chapter 7 discharge can be granted a few months after you file your bankruptcy petition. For eligible individuals who want to free themselves from debt problems quickly, and for those who do not want to commit themselves to a long-term debt repayment plan, chapter 7 is often the answer.

For people who have property they want to keep, filing a Chapter 13 bankruptcy may be the better choice.

Some kinds of debt, including child support and alimony arrearages, most taxes, and student loans cannot be discharged in a bankruptcy. If a large part of your debt is nondischargeable, chapter 13 may be right for you.

A Chapter 13 bankruptcy is also known as a reorganization bankruptcy. Chapter13 enables people to pay off their debts over a period of three to five years. For individuals who have consistent, predictable annual income, Chapter 13 offers a grace period.

Any debts remaining at the end of the grace period are discharged.

Once the bankruptcy is approved by the court, creditors must stop contacting the debtor. Bankrupt individuals may then continue working and paying off their debts over the coming years, and still keep their property and possessions.