If you're considering bankruptcy, you might want to know how the system decides who gets relief. Before you file, it's a good idea to understand who makes the decision and how it will likely go down.
A judge will have the final say in your case. However, there is one base factor that may give some say to your creditors. The type of bankruptcy will determine how much power the creditors have over the outcome.
One of the most important decisions to make when filing for bankruptcy is whether you should file for Chapter 7 or Chapter 13 bankruptcy. Both forms of bankruptcy can be very useful when you are trying to get out of debt. If you still aren't certain, you should consult with a bankruptcy lawyer.
Your Income Is Too Low
Chapter 13 is referred to as a wage earner's bankruptcy. The purpose of Chapter 13 bankruptcy is to gradually pay off some or all of your debt.