Many credit card companies perpetuate the myth that bankruptcy is just for people who aren\u2019t able to manage their finances and purposefully abuse their credit cards, but this is absolutely wrong. Paducah B<\/a>ankruptcy lawyers<\/a> have filed bankruptcy cases for a wide variety of people. A debtor can be anybody from a teenager to a senior citizen, from a professional to a laborer, from a layperson to a minister, et cetera. Debtors come from all walks of life. Financial problems are not limited to just a few demographics.<\/p>\n Those who seek debt relief are usually in situations that are beyond their control. Most of the people who file for bankruptcy find themselves in unfortunate circumstances such as losing their job, failing in business, being in an accident, getting a divorce, or getting really sick. Bad luck can strike anybody. For many people suffering financial distress, filing bankruptcy with one of the bankruptcy courts is often the solution to get out of debt.<\/p>\n Bankruptcies involve a federal law providing people and businesses a means to get a fresh start by reducing or removing their debts. Most debts can be eliminated through a bankruptcy discharge, but there are certain debts that are just not dischargeable, such as child support.<\/p>\n Those who file bankruptcy have several types of bankruptcy to choose from. The bankruptcy code mainly provides filers two personal bankruptcy chapter options: Chapter 7<\/a> (liquidation) and Chapter 13<\/a> (reorganization).<\/p>\n Chapter 7 is also referred to as a \u201cBig Eraser\u201d since it quickly eliminates most debts. Not everybody is eligible to file this chapter. Debtors have to pass a means test to qualify. Meanwhile, Chapter 13 is a forced repayment plan. Filing Chapter 13 allows debtors to pay back what they owe; however, filers make payments based on what they can afford to pay and not on how much their debt is.<\/p>\n The bankruptcy process involves the advantage of the automatic stay or automatic stop. This is part of the bankruptcy protection that appeals to debtors. Once a debtor files for bankruptcy court protection, all debt collection efforts from creditors or collection agencies must stop. When a bankruptcy case is filed, any wage garnishment, tax levy, foreclosure, or even a simple collection phone call must come to a halt.<\/p>\n In bankruptcy cases where the person filing for bankruptcy has secured debt and has pledged property as collateral such as in a mortgage or a car loan, payment must continue or the property must be turned over upon court order.<\/p>\nBankruptcy Petition<\/h3>\n