Bankruptcy

Filing bankruptcy is often the last financial resort that offers debtors a way out of financial turmoil. Bankruptcy laws have been changed many times over the years and recently the new bankruptcy laws have made it harder for people to seek bankruptcy protection. For example it used to be easier to file for chapter 7 bankruptcy than it is now.

Before you decide to file bankruptcy, you should read the bankruptcy FAQ to at least know the basics of what you are about to do. When filing bankruptcy, you need to comply with all the bankruptcy laws. You may want to contact a few bankruptcy law firms to get quotes on the services of bankruptcy lawyers. You can also file your bankruptcy petition yourself.

Knowing how to go bankrupt is not just about how to file for bankruptcy. Bankruptcy can destroy your credit making it hard to get credit cards after bankruptcy. If you plan to refinance after bankruptcy you will have to rebuild your credit at least a little before lenders will approve you.

Different debts are discharged by different types of bankruptcy. Most debts are discharged with chapter 7 bankruptcy. However, there are debts that will usually not be discharged after bankruptcy such as guaranteed student loans and taxes, see bankruptcy student loan.

While chapter 7 bankruptcy will relieve you of more debts than other types of bankruptcy such as chapter 13, some people prefer not to lose their assets. Small businesses, for example, prefer to file chapter 11 bankruptcy for reorganization. Small business bankruptcy under the chapter 11 code will allow the business to continue to operate and restructure the debts.