What is bankruptcy?

Bankruptcy is a legal way of getting relief from most debts. Chapter 7 is the most common form of bankruptcy. It involves the filing of a petition in Bankruptcy Court. Your creditors are then notified and a hearing is held that you must attend. After that, the Bankruptcy Court will enter an order that you are legally free from dischargeable debts. Chapter 13 is a bankruptcy that discharges debts after completion of a 3 to 5 year repayment plan.