As a previous post highlighted, filing for a Chapter 7 bankruptcy can help a debtor obtain a fresh financial start. California residents struggling with financial problems probably understand that there are mechanisms that could help with their debt situation. However, not everyone explores how the bankruptcy process could assist him or her. The term bankruptcy is a tough one to include in one's vocabulary, but even if Chapter 7 is not right for one person, there are other bankruptcy and debt relief options. One of these options is to file for a Chapter 13 bankruptcy.
How does Chapter 7 differ from Chapter 13 bankruptcy? Bankruptcy, in general, is a legitimate legal process used by individuals and businesses dealing with financial problems. The bankruptcy process is initiated to erase debts or work through a repayment plan debts so that an individual or business can stay afloat. The bankruptcy process is also a mechanism used to stop the harassment of creditors, stop wage garnishment, and even halt the repossession and foreclosure processes.