Before filing for bankruptcy, it is always advisable to consider all the other available alternatives that may work for you. They include talking to your creditors and having them agree to accept a lesser amount as the total debt settlement. You could also ask them to give you more time for you to reorganize yourself and start making monthly installments towards settling the bill.
For individuals who really need to file for bankruptcy, chapter 7 which is also known as personal insolvency is considered to be more appropriate. It is concerned with liquidation of your assets so as to repay your creditors. You are supposed to give up a reasonable portion of your assets to be sold off to cater for your debts. The amount of assets you give up should be enough to cover a proportionate portion of your debts.
The good thing with personal bankruptcy is that your debts will be discharged within a very short time and your name cleared from the list of insolvents within 12 months. This is short enough period of time in which you are able to quickly recover from the mental turmoil that is characteristic of insolvency.
Filing for personal insolvency will put a stop to the efforts of your creditors geared towards recouping what you still owe them. If you work with an attorney, he might just be able to bargain a good deal for you and you could have most, if not all of your debts forgiven. This is if you could be able to prove that the circumstances leading to insolvency are truly genuine and nothing of your own doing.
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