Filing Bankruptcy   Information, products, and services concerning filing for bankruptcy in the United States.

What Is Bankrupty And Is It For Me?

Each year more than 1,300,000 people in the United States file for protection under the federal bankruptcy laws according to the American Bankruptcy Institute.

Bankruptcy is normally used as a last resort after other attempts to solve a person's financial problems fail. You may want to discuss your financial situation with a credit counselor or an attorney to see if filing bankruptcy is the best decision for you.

Chapter 7

Chapter 7 bankruptcy code is the liquidation of most personal debts. The only debts you cannot liquidate: student loans (unless they are over 7 years,) taxes of any type, and child support or alimony, these must still be paid.

Chapter 11

Chapter 11 bankruptcy is generally used to re-organize a business, although some individuals are also eligible. This type of bankruptcy allows a business to continue operating while repaying creditors through a court-approved re payment plan.

Chapter 13

If you have a regular income, chapter 13 bankruptcy provides a method for repaying your debt over a specific period of time designated by a court-approved plan. The period of time usually allowed ranges from three to five years. Generally, only a person with unsecured debts of less than $270,000 and secured debts of less than $800,000 is eligible.

Chapter 7 is the most common form of consumer bankruptcy and can be filed in the Federal Bankruptcy Court in your area, anywhere in the United States.

The first step in filing bankruptcy is to file a petition at the clerk’s office of the federal bankruptcy court in your area. Your petition should include a list of all creditors, the sources of your income, a list of all real and personal property, and a detailed list of your living expenses.

You can obtain the forms to file from the federal bankruptcy court in your area. You must normally pay the appropriate court filing fee at the time you file your petition. Under special circumstances the court may allow you to pay the fee in installments or permit the fee to be waived if you are indigent.

In a regular proceeding, the procedure usually takes from four to six months. You can file for Chapter 7 bankruptcy only once every six years, and notice of the filing will usually remain on your credit report for up to 10 years. Note, although your debt may be discharged, anyone who has co-signed a loan with you will remain responsible even after your bankruptcy.

If you have come to the conclusion that filing for bankruptcy is the only way out, you have numerous options available to you from software programs, to businesses and attorneys who can assist you with filing your own bankruptcy.