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Consumer bankruptcy refers to a bankruptcy case filed to reduce or eliminate debts that are primarily consumer debts. Consumer debts are debts incurred for personal, as opposed to business needs. A consumer can file under chapter 7 or 13 of the Bankruptcy Code. A chapter 7 bankruptcy is a type of bankruptcy in which certain property is sold and used to repay debts. If there is no property that can be resold, many of the debts will be discharged, or cancelled, at the end of the bankruptcy case. However not everyone is eligible to file Chapter 7 bankruptcy. Chapter 13 bankruptcy can be resorted to by individual consumers who have regular income and don’t qualify for Chapter 7 bankruptcy or the individual who has assets they don't want to have liquidated.