Bankruptcy can relieve the honest but unfortunate debtor from the pressures of excessive debt by providing a fresh start. It allows you to discharge much of your debt or allows you time to get back on your feet without harassment by creditors. The bankruptcy laws also benefit creditors by providing a method for them to obtain at least partial payment of a debt in an orderly fashion.

For many, making the decision to file for bankruptcy is difficult. You may think bankruptcy is a sign of failure and an indication that you can't manage your own affairs. In truth, most people who file for bankruptcy intend to pay their bills but can't. By filing for bankruptcy, you can start again with a clean slate, free of the stress and depression that result from being just one step ahead of the bill collector. 

At the same time, the decision to file bankruptcy should be carefully considered. It is a Federal court proceeding which can affect your legal right to keep or to use your property.  Once you start a bankruptcy case, it may be impossible to stop.

There are two main types of bankruptcy available to individuals. In Chapter 7, your nonexempt assets are sold to pay creditors while most of your debts are discharged. In Chapter 13 or Chapter 11, you prepare a reorganization plan to pay off creditors in full or in part. Once you file a bankruptcy petition, an automatic stay prevents creditors from starting or continuing most legal proceedings against you.