Name: Law Offices Of Lou Gehrig Harris. Descripton:We provide two common types of bankruptcy that apply to most individuals:Straight Bankruptcy, (Chapter 7): A straight bankruptcy includes a court administered sale of any of the person filing for bankruptcy relief property that is not exempt, with the proceeds going to pay his or her debts. The filer maykeep some secured property (such as a home or car) by entering inagreements with the creditor of the property. Many people are allowedto keep all of their property because it all falls within exemptionsdiscussed below.Wage earner plan (Chapter 13): A personwho has a regular source of income (wages, welfare, pension, etc.)Works with the bankruptcy court to pay off debts with an installmentplan run by a court chosen Trustee. This plan can be helpful toindividuals that want to avoid having property securing debtsrepossessed. This plans may protect co-signers of debts as well as thefiler. This plan usually takes three to five years to complete.Remember! Bankruptcy is a serious legal proceeding and should only be considered after other options, such as budgeting and credit counseling have been weighed. Bankruptcy may appear on your credit record for up to ten years and will interfere with getting credit from many lenders.However, a person thinking about bankruptcy probably will already havebad credit. In some cases, bankruptcy will help a person restore creditby getting them on top of their bills more quickly.