The federal bankruptcy code details the guidelines for filing bankruptcy. Consumer bankruptcies are typically included under Chapter 7 or Chapter 13, depending on the type and amount of debt you owe. In a Chapter 7 bankruptcy, your liability for certain types of debt is erased. In return, you agree to surrender some or all of your assets to the court.
People have a right to file a bankruptcy case without an attorney or legal representative. The person should obtain as much information as possible regarding the bankruptcy process prior to filing the case. Compliance with the Federal Rules of Bankruptcy Procedure and the local rules of the state's district bankruptcy court is required. Most bankruptcy court websites provide instructions and non-legal advice to debtors who do not have a bankruptcy attorney.
It’s a hard, painful decision and one fraught with emotion. But it is not the end of the world, and within a short amount of time after discharge, credit can be improved and reinstated. Some people get credit card offers in the mail immediately. The interest rates are high and the credit limits low, but life can move on.