The stated goal of federal bankruptcy law is to provide the honest debtor with a fresh start. To help you determine if you need a fresh start, you can use our Credit Card Debt Calculator to determine how long it will take to pay off your credit cards if you do nothing.
A bankruptcy case is commenced by the filing of a petition. You must also file a statement of your assets and liabilities and schedules listing your creditors.
The property a debtor can keep through the bankruptcy is determined by the specific exemptions available under state law. Bankruptcy Information allows you to search for state exemptions. In addition, residents of certain states are allowed to choose federal exemptions instead of state exemptions.
Before deciding the appropriate course of action one may wish to explore alternatives to bankruptcy and review our list of frequently asked questions to gain a bettor understanding of the bankruptcy process.
Personal Bankruptcy
Chapter 7 and Chapter 13 are the two main chapters under which individuals can file personal bankruptcy. Chapter 7 bankruptcy is a liquidation of assets while Chapter 13 bankruptcy is a reorganization where the debtor creates a three to five year payment plan.
The primary reasons for filing personal bankruptcy are unforeseen medical expenses, excessive credit card debt, loss of employment, and divorce. Needless to say many of these events create not only financial difficulty but also a tremendous amount of disruption and distress in and of themselves. This makes it especially important that individuals consider all available options and bankruptcy alternatives to make sure whatever action they settle upon is in their long term interest.
If one determines that personal bankruptcy is the best option available then one should learn more about the federal bankruptcy law. Bankruptcy is a important decision and the law and it application to one's particular situation can be very complicated. It is generally recommend that one consult with an attorney with experience in the personal bankruptcy field. If one feels comfortable with attempting the bankruptcy process without an attorney there are online bankruptcy services that can be of assistance. It is also possible to proceed by completing the bankruptcy forms on one's own but this could be very confusing and one should proceed with cautio
