A research company has reported that personal bankruptcies are down 8% for the first half of this year compared to the same period last year. Chapter 7 bankruptcies were down a total of 9% and Chapter 13 bankruptcies were down 3%.

Chapter 7 bankruptcy is the more common form of personal bankruptcy and is used by people who do not have a steady form of income or who have lost their ability to earn. Under Chapter 7 bankruptcy, the debtor's assets are liquidated and distributed to their creditors. All debts are discharged and no repayment plan is set in place. The exception to this rule is that certain non-dischargeable debts are left in place and any debts acquired within 90 days of filing are also not discharged. This helps discourage pre-bankruptcies shopping sprees.

Chapter 13 bankruptcies are also known as the "wage earners plan." Under this type of bankruptcy people with a steady form of income can restructure their debt and come up with a repayment plan. Chapter 7 bankruptcies stay on your credit report for 10 years while Chapter 13 bankruptcies stay on your report for a total of seven years.

Need help filing for bankruptcy in Texas? Get legal assistance now by contacting the Malaise Law Firm to obtain representation and guidance from a South Texas bankruptcy attorney.