Before you consider filing for bankruptcy, consider talking to a debt consolidation company or a credit counseling service. Sometimes it may seem like there's no way out of your financial problems, however, you may be wrong. Sometimes it takes a "financial eye" to sort through your expenses and come up with a practical and feasible plan that works. At Debt Consolidation Company & Reduction Services we do not want you to file for bankruptcy. However, if you must, we at least want you to understand the basics.
Bankruptcy involves eliminating consumer debt that you owe to creditors. There are two basic kinds: Chapter 7 and Chapter 13. A Chapter 7 bankruptcy involves giving up all of your assets by selling them and giving the proceeds to your creditors. Your slate is then wiped clean. A Chapter 13 bankruptcy provides the debtor a repayment plan, to pay any amount due in installments to the creditor(s).
