Bankruptcy Law


Filing bankruptcy is not something that a person exactly prepares for or expects to do in their life. As we all know situations arise, life happens and before you know it bankruptcy may be you best option. We have gathered some information you need to know so you can make an informed and educated decision.

Personal Bankruptcy Types:

  • Chapter 7 – Wipes away all debt. This  would be a good option for those with a large amount of debt, or for those who don’t have enough income to qualify for a payment plan. If they do not own their own home and have mounting medical bills this may be the best option. Individuals must qualify for Chapter 7 bankruptcy. There are certain qualifications that have to be met including income below the state median or debts so high that paying them is not feasible with the amount of income.
  • Chapter 13 – Creates a repayment plan of sorts that allows the filer to pay off their debts within three to five years. For example, if you were unemployed and got behind on your mortgage payment, but now have a job where you are able to make the payments, Chapter 13 can be helpful. Chapter 13 will halt collection attempts and foreclosures, allow you to keep your assets, and requires you to repay any missed payments in your payment plan.

How Will Bankruptcy Affect Your Credit?

  • A major misconception among consumers is that a bankruptcy will ruin their credit for life. This is not true. A bankruptcy will be notated on your credit report. However, if you have already been dealing with financial issues, such as charge-offs and missed or late payments, the bankruptcy may not damage your credit too bad. Some consumers even see their credit improve after a year or so after filing. The bankruptcy will typically stay on a credit report for 10 years, but as it ages, it begins to weaken its effect on obtaining new credit.

How Will You Feel If Your Financial Information Is Public?

  • Not everyone knows that when you file bankruptcy, it is a public matter. Anyone who is interested can see your most recent financial information. Since many people don’t know this, most people won’t try to look, but it is something to be cognizant of.


  • Bankruptcy is a big decision, but it is not the end of the world. As you decide what is best for your financial situation, use the information we have shared here. Remember that is always best to consult with a bankruptcy attorney to discuss your options. There are many factors to consider when deciding which Chapter to file and we can help. Let the bankruptcy experts an Jones Brown PLLC help you through each step of the process. CLICK HERE to contact Jones Brown PLLC.

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