You are given only six months grace from your graduation date until you have to start repaying your student loans. Don't have a job yet? Too bad, kid. Welcome to the real world. In the 1970's, college students figured out that by declaring personal bankruptcy, student loans could be forgiven or pushed back a few years.

There is some confusion of what exactly chapter 7 bankruptcy actually is and this confusion sometimes leads to people making critical errors in judgment when the individual contemplates such a filing.

Corporations who get into deep financial trouble can file Chapter 11 bankruptcy. Herein the courts will order the company's creditors to stop pursuing monies that have been extended to the business in the form of credit.

It is believed that each year as many as one million Americans go bankrupt and are found filing for bankruptcy. Most of these individuals that file for bankruptcy do so under different personal bankruptcy laws that include chapter thirteen and also chapter 7.

As good as it may seem that filing bankruptcy will help you out of such financial mess, it can also lead to much confusion in your mind trying to figure out what is Chapter thirteen bankruptcy and how does it differ from chapter seven bankruptcy.