As a common kind of financial obligation relief, bankruptcy is a legal process that enables a debtor to liquidate their debt or combine and repay their financial obligation. The two most typical kinds of bankruptcy include Chapter 7 and Chapter 13 bankruptcy. Chapter 7, called the “financial obligation liquidation” bankruptcy, permits a debtor to liquidize a bulk of their debt in a short time frame. Chapter 13, on the various other hand, provides a debtor an opportunity to repay their financial obligation in budget-friendly month-to-month repayments over a period of three to 5 years.