First of all, you're not alone. Filing bankruptcy is probably one of the most difficult decisions you'll ever make. So, let's make sure you comprehend exactly what filing bankruptcy means and how it will affect your life. The following guide to filing bankruptcy will help you to understand what goes on behind the scenes. Bankruptcy, as you know, has changed over the last 3 years. In October, 2005 new federal laws made it harder to file Chapter 7 bankruptcy (total liquidation) and instead required you to file Chapter 13 bankruptcy (repay at least partial debt).

Bankruptcy can be an emotional issue. Most people wish they could avoid bankruptcy but can't quite figure out how to do it. If you feel overwhelmed with debt you may not be able to see the way out. The good news is that you can avoid bankruptcy with a few new ideas. Let's start with some facts about bankruptcy. For the fiscal year ended June, 2008, just shy of 1,000,000 people filed for bankruptcy in this country. Wages during the last 10 years have remained fairly flat while credit card debt has soared. This year alone $27 billion dollars in credit card debt was written off through bankruptcy.

Are you considering filing for bankruptcy, but are still not sure? Do you know what you are getting into when you finally do file for bankruptcy? There are only a few real reasons why you would ever consider filing for a bankruptcy and there are many reasons why people do that are not good enough. Here is what you need to know. First, if you are not in debt over your head, then you do not need to file. If you do not have double your annual income in debt, then you do not need bankruptcy.