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 may keep some secured property (such as a home or car) by entering in agreements with the creditor of the property. Many people are allowed to keep all of their property because it all falls within exemptions discussed below. Wage earner plan (Chapter 13): A person who has a regular source of income (wages, welfare, pension, etc.) Works with the bankruptcy court to pay off debts with an installment plan run by a court chosen Trustee. This plan can be helpful to individuals that want to avoid having property securing debts repossessed. This plans may protect co-signers of debts as well as the filer. 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 have bad credit. In some cases, bankruptcy will help a person restore credit by getting them on top of their bills more quickly.