Chapter 7 Bankruptcy Information
Chapter 7 bankruptcy information is essential to distuinguish the common type of 
bankruptcy is aka straight bankruptcy. This requires liquidation of the applicants non-exempt belongings. The amount that is received selling of those assets is then turned over and divided among his debt holders to pay the debts. Certain assets are exempt from chapter 7 such as home, car, work tools and some business, and some personal items. This exemption varies with local laws.
At completion , the court discharges the applicant from their debt. And is no longer obligated or responsible for the debts. Then he can start life anew. However, for a decade, the bankruptcy remains on the credit history.
Chapter 13 Bankruptcy ( Debt consolidation)
Those who have valuable assets, house ,property, that is not exempt in Chapter 7, choose Chapter 13 bankruptcy. Filing Chapter 7 bankruptcy risks a lot of assets.
Understand the important and distinguished difference, Chapter 13 bankruptcy. vs Chapter 7 bankruptcy, payments not handed over immediately. The debtor offers to pay the creditors over five years in monthly instalments and then submit a payment schedule to the court. It is not really bankruptcy in that you pay back the ammount using the law to curb the rights of the creditor and enforce your own rights aganst them. Insofar as it is unlawful to lend funds to a person that they cannot 
afford to repay , no matter what contract they sign or what was made to the applicant at the beginning of the term, the creditor is obliged, as the credit proffessional to assertain if the applicant can afford to repay , or decline , adjust the ammount of the loan accordingly , however , in most cases the creditor will still lend the advance , but at a higher rate , when the ammount should have really been declined or lowered . Debt consolidation will force not only a no interest and no fees to be applied to the loan but, in many cases a dimished final repayment of the loan , so repayment of a $10000 loan can be as little as $2000!
Chapter 11 bankruptcy
In these proceedings, the court takes into consideration a financial situation and their debt in order to determine how much they are realistically able to repay. New law requires that a debtor gets credit counseling from an approved independent credit counseling agency (not for profit agency)
Here is an article I like for a simple explanantion…
"Chapter 7 Bankruptcy is the most common type of bankruptcy filed by ordinary consumers. The object of filing Chapter 7 is to obtain a discharge of all your unsecured debts, such as credit cards, and even most judgments. A court "discharge" simply means that you never have to pay any of these debts. Sounds pretty good, right?
Chapter 7 is a very powerful tool, providing a fresh start, free from debt, but it is not for everyone. To qualify for Chapter 7 bankruptcy, the debtor must be able to demonstrate that he or she truly cannot afford to pay any of his or her debts after necessary living expenses. After all necessary living expenses, such as rent or mortgage payments, food, clothing, utilities, car payments, gasoline, insurance, and the like, there cannot be any income left over to pay even a hundred dollars or more toward one’s credit cards and other unsecured debts.
In addition, Chapter 7 bankruptcy also requires that if the debtor has valuable assets that do not fall within an allowed exemption, then the asset must be given up to be liquidated (sold) in order to pay something toward one’s creditors. States differ in the exemption amounts or values of assets one may keep in a Chapter 7. California, for example, provides that a married couple under age 65 may keep a home with no more than $75,000 of equity, and a single person under 65 may retain a home with equity no greater than $50,000. Other exemption amounts exist to cover relatively low value vehicles, household furnishings, tools, and other personal assets. The most protected asset in any state is one’s qualified retirement accounts. A 401(k) or IRA, for example, are completely exempt or protected in most circumstances.
In a nutshell, a Chapter 7 bankruptcy gives the debtor a second chance free from nearly all unsecured debts, but to get such a benefit, he or she must not earn enough to pay anything toward such debts. And, if the debtor has valuable assets over and above the small amounts he or she is allowed to keep, then those assets will be taken away and sold to pay something toward his or her debts.
If the debtor earns enough to pay something toward his or her unsecured debts, then the debtor will not qualify for a Chapter 7 discharge. Likewise, if the debtor has valuable assets and is not willing to risk them being taken from him, then Chapter 7 is not a good choice for that debtor. In either of these cases, the debtor should consider a Chapter 13 bankruptcy, in which the debtor is expected to pay what he or she can pay after necessary living expenses toward his or her unsecured debts for a period of 3 or 5 years. Under Chapter 13, however, the debtor is able to keep all of his or her assets. Nothing is taken away from a Chapter 13 debtor.
In considering whether to file either Chapter 7 bankruptcy or Chapter 13 bankruptcy, one should always consult with a competent Bankruptcy Attorney."
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Jon G. Brooks is a San Jose Bankruptcy Attorney who practices Chapter 7 and Chapter 13 Bankruptcies
Article Source: http://EzineArticles.com/?expert=Jon_Brooks
