Bankruptcy is a legal proceeding based on the laws of the United States and what is known as the Bankruptcy Code. Individuals can start a bankruptcy case by filing a bankruptcy “petition” and various "schedules" with the Bankruptcy Court. A bankruptcy allows individuals (and some businesses in a Chapter 7) to eliminate or repay debt in a way that is going to benefit the "debtor"- or the person who is filing for bankruptcy. It is done following the rather strict rules of and under the protection of the United States Bankruptcy Court.
Chapter 7 and Chapter 13 are the two most common types of bankruptcy that people file for. Most likely it is your circumstances that will dictate which bankruptcy you would use. Some people are Chapter 7 candidates. Some are candidates for a 13. Few people may be able to pick, and some should do neither.
If you are facing overwhelming debt and wondering if you should file for bankruptcy but are afraid to go talk to a lawyer, don't be. A good lawyer is going to be honest with you and tell you if you are not a good candiate. If you are, then you will know your options and can decide. Contact O'Connor Cadiz Law for a confidential, no cost consultaiton. Don't forget to ask for a free copy of our new book "Bankruptcy Myths Exposed!"