Bankruptcy stops creditors from collecting debts from you until a federal court decides what to do. If the court decides in your favor, you may be able to get rid of some or all of your debts. Or, it can help make a plan to repay your debts.
Before deciding to go this route, there are some things you need to know. It’s not for everyone. For instance, there are some debts that cannot be eliminated through bankruptcy, like student loans, back taxes or child support.
Talk to a lawyer
There are lawyers who specialize in bankruptcy law and you should speak with an attorney to see what your options are. Bankruptcy is complicated and difficult to handle without a lawyer’s help. Non-profit credit counselors can also be helpful.
Bankruptcy stays on your financial record for ten years. It is worth considering other options that may be better. For instance, you can contact nonprofit credit counselors, or negotiate new payment plans.