Bankruptcy basics and what you need to know

Who can qualify for bankruptcy and what should you expect once you've filed for it? The answer varies case by case, says personal finance expert Farnoosh Torabi.

Chapter 7 and Chapter 13 bankruptcies will mean consumers will not qualify for a loan, credit card of credit, personal finance expert, Torabi says. But there are resources, like National Association of Consumer Bankruptcy Attorneys, that can help individual who want or need bankruptcy protection.

Torabi says Chapter 7, which is largely debt liquidation, is the most popular legal proceeding, but cautions that the process is complicated and may not be the best route to reset unfavorable finances.

Those in need can visit the Remake America resources page and get more financial tips for the changing economy.

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