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There are usually two main types of creditors involved in a bankruptcy proceeding: unsecured creditors and secured creditors. The difference between the creditors is important, whether you are involved in a Chapter 7, Chapter 11 or Chapter 13 bankruptcy.

Recently, there has been a significant push to allow debtors to discharge student loans during bankruptcy. As the law stands, student loans are one of the few debts that a debtor usually cannot discharge through a Chapter 7 bankruptcy.

An adversarial proceeding in bankruptcy court involves a dispute between two parties during the course of a bankruptcy. During the recession, there has been a rise in adversarial proceedings because bankruptcy has become a common phenomenon and has affected many people in all types of financial situations.

Individual debtors can choose to file for Chapter 7 or Chapter 13 bankruptcy, depending on their unique financial circumstances. Many people prefer Chapter 7 bankruptcy because it allows debtors to start anew by liquidating their assets and removing much of their debt. Yet, not everyone is eligible for Chapter 7 bankruptcy.