Bankruptcy is a process designed to help individuals and businesses eliminate their debts or repay them under the protection of the bankruptcy court. The goal of bankruptcy is to help individuals get a fresh financial start.
Bankruptcy is a federal process, but is filed based on the state and city you live in. For instance, if you live in Plano, Texas, you would file bankruptcy in Eastern District of Texas Federal Court. If you live in Dallas, Texas, you would file your case in the Northern District of Texas Federal Court.
Bankruptcy can help you to eliminate all of your debts, some of your debts, or help you create a realistic payment plan that is based on what you can afford to pay rather than how much you actually owe.
Bankruptcy is for any individual or business who seeks relief from excessive debts. Bankruptcy can also be used for individuals that seek to keep property for which they have fallen behind on payments, such as a house or even a car.
In most cases, bankruptcy will stop harassing creditors calls, lawsuits, and even IRS garnishments and allow you a chance to regroup and potentially wipe out most, if not all of your debts.
Often bankruptcy is referred to as a last resort. However, very often it is the first step in making your financial situation more stable and even starting over.