Chapter 7 bankruptcy is a terrific option for some people, but it is not something everyone needs to use. How do you know if it's an option you should utilize or an unneeded step, when perhaps all you need to do is make a few different financial changes?
Chapter 13 bankruptcy is for people with large debt or for companies that need to re-arrange their finances. You have to pay the debt back but you can pay it back, or part of it back, in monthly installments for three to five years. Most of the debt will be pooled together and you make your payment to an individual assigned to your case. This person is your trustee. Your trustee makes sure that your creditors are paid every month.