Hence, we have the following bankruptcy types: Chapter 7 (liquidation), Chapter 9 (adjustment of debts of a municipality), Chapter 11 (reorganization), Chapter 12 (adjustment of debts of a family farmer or fisherman with regular annual income), Chapter 13 (adjustment of debts of an individual with regular income) and
In many cases, Chapter 7 bankruptcy is a better fit than Chapter 13 bankruptcy.
For instance, not only is Chapter 7 quicker, many people prefer the following two things as well: filers keep all or most of their property, and. filers don't pay creditors through a three- to five-year Chapter 13 repayment plan.
It's fine to stock up on grocery items or household goods like toilet paper or cleaning supplies before your file.
In some cases, it may even make sense for you to purchase a car if the court will seize your current vehicle.
However, stay away from unnecessary large purchases.