Icon LockIcon Lockicon-branch-logo-marinericon-branch-logo-pccicon-branch-logo-pfcIcon BullseyeIcon Credit CardIcon HouseIcon LockIcon LockIcon Lockicon-logo-whiteMagnifying GlassMagnifying GlassMagnifying Glassicon-pfc-logo-whiteicon-pioneer-logo-whiteIcon Wheel

BankruptcyDeclaring bankruptcy is a major decision that should only be made after exploring all feasible options of debt repayment. While bankruptcy can eliminate most debts under the protection of the federal bankruptcy court, it will not alleviate one from tax liabilities, child support, or spousal support. It can also have damaging effects on your credit report for 7-10 years, making it very difficult to borrow or receive any kind of credit in the future.

The two most common types of bankruptcies for individuals are Chapter 7 and Chapter 13.

Chapter 7 Bankruptcy

A Chapter 7 bankruptcy is also known as “liquidation bankruptcy”. A trustee is assigned to your case, and they will sell any significant nonexempt property in order to repay your creditors. Property that may be exempt from liquidation can include real estate, clothes, trade or professional tools, and a number of other items.

A typical Chapter 7 bankruptcy case takes several months to complete, and you must pass what’s known as a “means test”.  Basically, if you earn a high income you may not be eligible to file Chapter 7 and may have to use Chapter 13 instead.

Chapter 13 Bankruptcy

Unlike Chapter 7 Bankruptcy, Chapter 13 Bankruptcy, or “reorganization bankruptcy”, requires no liquidation of your belongings. Chapter 13 allows you to repay all or some of your debts to creditors through a structured repayment plan over the course of 3-5 years. Since you have to repay your debts, you will have to prove that you can afford to meet your payment obligations. Also, your secured and unsecured debt must be below a certain dollar value in order for you to file.

Before you file for bankruptcy, consider alternatives for managing your debt, and learn what will happen to your debts and property in bankruptcy, so there are no surprises. It’s best to seek legal counsel or advice from professionals who can evaluate your situation and help you make the right decision.

Blog posts are for informational purposes only.

get personal finance tips,
and seasonal offers.

Sign up for the Mariner Finance newsletter.


†We offer personal loans starting at $1,000 with a maximum up to $25,000, depending on your state of residence. Loans between $1,500 and $15,000 may be funded online. Loans less than $1,500 or greater than $15,000 are funded through our branch network.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. As a result, under our customer identification program, we must ask for your name, street address, mailing address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

*The process uses a “soft” credit inquiry to determine whether a loan offer is available, which does not impact your credit score. If you continue with the application process online and accept a loan offer, or are referred to a branch and continue your application there, we will pull your credit report and credit score again using a “hard” credit inquiry. This “hard” credit inquiry may impact your credit score.


Mariner Finance, LLC, NMLS No. 166564 (www.nmlsconsumeraccess.com)
8211 Town Center Drive, Nottingham, MD 21236. Telephone Number 877-310-2373.

Equal Housing Lender Logo

You are about to leave marinerfinance.com.

Mariner Finance provides this link for your convenience and is not responsible for and makes no claims or representations regarding the content, terms of use, or privacy policies of third party websites.