1. What kinds of bankruptcies are there?
Generally speaking, for consumers there are two types. Chapter 7, which is total liquidation, and Chapter 13, reorganization, where a portion of your debts are repaid.

2. Which is best for me?
In short, if after taking into account your monthly budget, including all your reasonable bills, if you still have money left over to make a contribution towards your debt, then a Chapter 13 might be best. If you do not have any excess income after paying your monthly minimum expense, then a Chapter 7 might be your only option.

3. Do I get to keep any of my property?
Yes, you get to keep your exempt property. In some states, your exempt property includes the real property that you live in as your home, $1,000 worth of personal property, $1,000 worth of your personal automobile, and certain retirement accounts.

4.What about property that was put up for collateral for a loan?
You will have to agree to continue paying on the loan, or else the lender will be able to take the property back from you. It is common for a person in bankruptcy to keep paying on their car and house and then keep these items. You might also be able to keep certain credit cards if you agree to "reaffirm" these debts. However, all reaffirmation agreements are subject to Court approval.

5. What about credit cards?
Most credit cards are unsecured, meaning there is no property put up as collateral for the debt. However, some credit cards, such as Sears and Montgomery Ward are often secured. This means you may have to give the property back that you purchased with the card if you want to discharge the debt.

6. Is bankruptcy a long procedure?
It will take approximately three months from the time the petition is filed until the date of final discharge for a Chapter 7.

7. What is the procedure like?
A detailed petition listing all of your property, debts and other financial information is filed with the Court. A short period later there will be a meeting with the bankruptcy trustee that you must attend. This is usually the only appearance required. Unless there are problems or one of your creditors objects, the discharge will be granted a few months later.

8. How long does it stay on my record?
Generally, credit agencies can report bankruptcies for a period of ten years. But a bankruptcy is a court document, open to the public. It will always be there for someone who is really interested in looking.

9. If I am married, does my spouse have to go bankrupt also?
No, a single or joint petition may be filed. However, complications can arise if one party is transferring assets to the other spouse. Competent legal advice can advise you if a single or joint petition is advisable.

10. Can I go run up my credit cards and then go bankrupt?
No, the Trustee has the power to object to our being able to discharge debts where you fraudulently bought items with the idea of going bankrupt. If it is bad enough, it can be considered a crime

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