Bankruptcy is when an individual or organization ability to pay debt worsened ,which is legally declared.Bankruptcy is derived from"bancha rotta"an Italian word meaning broken bench.The whole process is designed and developed by the federal court to help an individual or an organization to get rid of debt or to repay them.The whole process is done under the Federal Bankruptcy Act,
BANKRUPTCY TYPES:- CHAPTER 7 and CHAPTER 13 are usually filed and most popular types of bankruptcy.other then that, CHAPTER 1,CHAPTER 3,CHAPTER 5,CHAPTER 9,CHAPTER 11,CHAPTER 12,are the subdivision according to FEDERAL BANKRUPTCY CODE.
It is always advisable to file bankruptcy when there is no alternative left.Bankruptcy doesn't mean that all your debt will be eliminated,it will just bring a temporary halt in your debt .
Things to be remembered while filing bankruptcy:-
1.Go for a lawyer who is approved by the court.
2.collect all the information and document you need to file.like filling of paperwork's.
3.collect all credit reports,any debt gone for collection/not gone,the debts you owe,
4.collect your account number,address,and the final settlement for each creditors.
5.estimate your income and expenses.
The lawyer will then check whether the information gathered by you is correct or not and then proceed further.
But i will always advice you to go for a debt consolidation rather then "BANKRUPTCY".