Five things you should know about bankruptcy:

1. “What types of bankruptcy are available to individuals?” Chapter 7 liquidation is designed for debtors suffering financial difficulty that do not have the ability to pay their existing debts. The purpose is to obtain a discharge (i.e. elimination) of their existing debts. Chapter 13 repayment is designed for consumers with regular income who are temporarily unable to pay their debts but would like to pay them in installments over a period of time. The bankruptcy courts will approve a repayment plan that will repay their debts in no more than five years.