First of all, to avoid too much extra info; A bankruptcy is a legal process to eliminate your obligation to pay some or all of your debts. The two most common types of bankruptcy are chapter seven bankruptcy and chapter thirteen bankruptcy. In a chapter seven bankruptcy, you are being released of your obligation to repay most bills, collections, and judgments completely. In a chapter thirteen bankruptcy, you will be required to repay a large portion of your debts, without interest over several years. This is common if you have too many assets to declare chapter seven.

Many people want to get out from underneath many of their bills or collection accounts. Sometimes due to uncontrollable events a person could find themselves with more debt than they can pay back in a reasonable amount of time. Before you declare bankruptcy there are a few things you should asses. First, will it be impossible to get your budget under control without bankruptcy? Many times if you just rearrange this a little you’ll find that with a little sacrifice you can get out of debt in a few years. Second, are you prepared to have a very negative brand on your credit bureau for many years? Once you are out of the bankruptcy you don