The length of your bankruptcy case will depend on what type of bankruptcy you file, and the type of bankruptcy you file will depend on your income and asset situation. There are four different types of bankruptcy: Chapters 7 (Liquidation), Chapter 11 (Reorganization/Rehabilitation), Chapter 12 (Family Farmer), or Chapter 13 (Individual Reorganization). Individual debtors are eligible for relief under all Chapters of bankruptcy, whereas corporate debtors are ineligible for relief under Chapter 13.
In short, yes. Filing bankruptcy is a serious financial move that will impact your credit score, but most people who file already have a severely compromised credit score from not paying bills. Chapter 13 bankruptcty will remain on your credit report for 7 years; Chapter 7 for 10 years. Practically speaking, however, a bankruptcy will really only effect your short-term (2-3 years) ability to purchase real estate. Although a perfect 850 credit score will be a long way off, it is possible to build credit back up to a respectable level in a relatively short period of time.
So you think you need to file personal bankruptcy. Take a deep breath. While bankruptcy in most cases should be a last resort, it can give you a fresh start financially, removing the burden of debt and allowing you to rehabilitate your credit score.
The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13.
Bill collectors can be notoriously pushy and rude. Thankfully, you do not have to tolerate their bullying. It is important to clearly understand both your rights and the rights of a collection agency in order to prevent illegal harassment. There are debt collection laws preventing creditors from harassing you – whether through annoying telephone calls, excessive letters, or unwanted personal visits to your home.