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The Different Types of Bankruptcy

Once you make the decision to file bankruptcy in Kentucky you are soon going to discover that there are many different forms of bankruptcy. Your particular financial circumstances will dictate which one that you will be eligible for. In most cases when it comes to personal bankruptcy it will either be a Chapter 7 or Chapter 13 bankruptcy. There are some distinctive differences among all of the different forms of bankruptcy and it is important to know which one that you are going to be eligible for, in order to be able to go through the entire process. There is a chapter 11 bankruptcy which deals with commercial enterprises. There is bankruptcy for family farmers or fishermen, which is the Chapter 12. Then some of the lesser-known ones are the Chapter 15 which involves cross the border bankruptcy cases. If you are a service member then your bankruptcy may be handled totally different and you may find that you come under the Service Members Civil Relief Act.

Many individuals assume that they are able to choose which bankruptcy act they want to go under. With the two common personal choices being the Chapter 7 and Chapter 13 many feel that the Chapter 7 is a better form of bankruptcy. They may be under the misconception that all of their debts are going to be discharged and that they will lose and nothing. With the Chapter 13 bankruptcy the debt responsibilities are still being met with a repayment plan however these are modified.

The first step for any individual that is contemplating bankruptcy as a form of debt relief is to seek out a qualified bankruptcy attorney who can guide them right from the very beginning. It may even come down to where a bankruptcy may not be the best choice at this particular time.

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