Just the Facts: Consumer Bankruptcy Filings, 2006-2017
Bankruptcy can provide a fresh financial start for consumers who cannot pay their debts, either because of insolvency or insufficient income to meet creditor demands. Bankruptcy generally works in one of two ways: liquidating assets to pay one’s debts under Chapter 7 of the U.S. Bankruptcy Code, or establishing a repayment plan under Chapter 13 of the code. Under a Chapter 7 liquidation, a debtor generally can achieve a fresh financial start more quickly than under a Chapter