Knowing how to file for bankruptcy can be confusing. Although there are six different types of bankruptcy under the Federal Bankruptcy Code, the two most common types of personal bankruptcy are Chapter 7 and Chapter 13. 

Under Chapter 7, an individual surrenders his non-exempt property to a trustee to liquidate the property and distribute the proceeds to the individual's creditors. This liquidation will cover most of the individual's debts, unless the debtor is guity of certain types of improper behavior in regard to his debt.

Under Chapter 13, the individual can retain his property but must promise to pay a portion of his income over a period of time. The payments depend on the amount of the individual's debts and income. 

If you or anyone you know is considering filing for bankruptcy, contact the Austin bankruptcy attorneys of Slater Kennon & Jameson,  LLP at 512-338-1100.