There are two different forms of bankruptcy and the type you choose will depend on your personal financial situation; an attorney can help you decide which path is right for you. Regardless of the type of bankruptcy chapters you choose, you will have immediate protection against collection agencies and their unsavory tactics, repossession of your property and the process will even stall the foreclosure of your home. This process is referred to as an automatic stay and it begins the moment you file for bankruptcy. There are two types of personal bankruptcy, including:

• Chapter 7 Bankruptcy: The most common form of personal bankruptcy, you’ll file Chapter 7 when you are unable to pay your existing debts. This process works best for unsecured debts and allows you to protect some of your assets.
• Chapter 13 Bankruptcy: If you have too many assets or too much income to qualify for Chapter 7 bankruptcy, then Chapter 13 might work for you. This process allows you to reorganize your finances and restructure your debts; if you are behind on a mortgage, car payment or other secured debt, then could be beneficial to file.