File bankruptcy is a step that no one likes to give. The reasons that prevent most people from following this path are mainly - the fear, the consequences and lack of knowledge.

The Fear – Are two aspects to be addressed. The first is the moral implication. The moral implication is the form how the other people will think about you after knows of its bankruptcy. The second is how the future will be. In this case, it is difficult to find the appropriate words, so I will summarize in one, hope.

The Consequences – The consequences are immediate. Soon after of the decree of bankruptcy, the person suffering a serious restriction of credit, including that - A bankruptcy will remain on your credit file for up to ten years.

The lack of knowledge –This point is very important to the success of the file bankruptcy due to many reasons. The key is that we are dealing with laws, therefore, not everyone knows or has a correct interpretation, so it's highly recommended to hire a lawyer. However, if you prefer to do everything alone, will know that have a big challenge ahead.

Finally, make sure that there are no other alternatives. How alternatives, I refer to - Seek help at some consumer credit counseling - Such counseling is intended to provide alternatives for avoid the bankruptcy; Try some loan, preferably with debt consolidation; If none of that worked for you and definitely have no other solution then it is time to prepare.

The first thing you must understand is that there are two common bankruptcy types, the chapter 7 (which is a straight or liquidation bankruptcy) and the chapter 13 (which is a repayment plan for individuals).

Chapter 7 bankruptcy - is filed by individuals who are unable to pay its debts and has the only solution is the liquidation proceeding. The debtor has all non-exempt property put on sale, then converts it to cash for distribution to the creditors. Finally, the debtor receives a discharge of all debts around of three or four months. In the majority of cases the debtor has no assets lose, so the person has the opportunity of give a "fresh start".

Note: Is only allowed discharge by the chapter 7 once every eight years. Thus, after a discharge take care with new debt in this period.

Chapter13 bankruptcy -is requested by people who intended to pay their debts but does not currently have resources to quite it without undoing of their property. Thus, this chapter provides a kind of renegotiation of the debt "forced", where the debtor has to adhere to a repayment plan that ranges from 3 to 5 years. Who participates in this method feels become safer because not have the risk of losing yours property during the period of discharge.

Note: Chapter 13 bankruptcies can be filed at any time.

• Prior to beginning the process of bankruptcy, you must seek consumer credit counseling from a company that is approved by the U.S. Trustee within a maximum period of 180 days before of the filing of a bankruptcy;

• You have that complete the BAPCPA's means test;

• You should submit a petition to mark a meeting with the creditors. This meeting allows ensuring that you have given truthful answers on your bankruptcy petition and that you understood and agreeing to filing for bankruptcy;

• Now, your case will be framed in one of the items described above. For each chapter the process has a distinct direction.

1. In a chapter 7 case, the trustee will determine whether or not there are assets or portions of assets that can be liquidated and used to repay your creditors. If the trustee determines that your assets are exempt and cannot be liquidated, a report will be sent to court claiming that not exist distribution to be made. If the trustee determines that there are non-exempt assets, they will be sold and the money will be used for the payment to your creditors.

2. In a chapter 13 case, you will be required to participate of a 3 to 5 year plan. In this plan you will pay the creditors the maximum possible in this period, this value will be based on the BAPCPA means test. When you finish paying the plan, you will receive the notice of discharge in about 30 to 60 days after your final payment. Finally, the trustee will ensure your payment has been followed and completed.

Not all debt can be framed in a chapter 7 or 13 case. For example, student loans and certain taxes, so you may not be completely relieved of the obligation to repay all debt.