Federal Bankruptcy law benefits both debtors and creditors by seeing that debtors get debt relief and creditors collect some of the debts owed. The types of bankruptcy filings are referred to by the chapter of the federal Bankruptcy Code that describes them.
Generally, individuals use Chapter 7 Bankruptcy or Chapter 13 Bankruptcy. Each case is different, but someone with few or no valuable assets would prefer chapter 7 because it involves a liquidation of most or all assets. Chapter 13 bankruptcy is a reorganization of debts where the debtor and creditors must accept new terms for debt repayment.
We are providing a great deal of bankruptcy information for those considering, or just researching, bankruptcy.
In lieu of paying the filing fee or filing an installment application, an individual chapter 7 debtor may file an application for waiver of the filing fee along with the bankruptcy petition. Guidelines for the courts to determine eligibility for a waiver are found here.