Bankruptcy is the final solution for those consumers who are "in way over their heads in debt ".  The consumer needs to contact a bankruptcy lawyer in order to get professional advice, and services that are based on his or her own unique situation.  Some times debt gets to the point of no return, making consumer repayment too difficult or some times impossible.  Bankruptcy is a federal legal issue,  so you would need to refer to the United States Bankruptcy Courts.  Links are provided below.  To take you to the website that is established by the federal government as a free service to debtors.

http://www.uscourts.gov/bankruptcycourts.html  
 
http://www.uscourts.gov/bankruptcycourts/bankruptcybasics.html
                                 
                                                                                    

On April 20, 2005, President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 otherwise known as the  B A P C P A. 

All reference on this page was obtained from the U.S. Bankruptcy Courts Pages.  You will find links on this page that will direct you to the information that you need from those help pages provided by Uncle Sam.  There are U R L s  next to each subject.  You can paste them to your browser if the link does not work.  These  U R L s will take you to a web site that is the governments.  This web site , and any directory that is provided does not replace , nor should be used instead of professional legal help.  If you are considering bankruptcy,  that means that you can not financially cover the debt you  have incurred.   You are strongly urged to seek legal advice.  Most law firms that specialize in this field usually offer a free consultation for consumers that are considering bankruptcy.  Consumer beware !   There are many sites out there that offer you " do it your self bankruptcy "  Not really a good idea unless you are really good at understanding law and bankruptcy proceedings. Usually a chapter 7 could run the consumer any where from $900 to $1500 in legal fees, and filing fees combined.

Below are some examples of the different types of bankruptcy laws:


                                 
 
Chapter 7   http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter7.html
A chapter 7 bankruptcy case does not involve the filing of a plan of repayment as in chapter 13. Instead, the bankruptcy trustee gathers and sells the debtor's nonexempt assets and uses the proceeds of such assets to pay holders of claims (creditors) in accordance with the provisions of the Bankruptcy Code. Part of the debtor's property may be subject to liens and mortgages that pledge the property to other creditors. In addition, the Bankruptcy Code will allow the debtor to keep certain "exempt" property; but a trustee will liquidate the debtor's remaining assets. Accordingly, potential debtors should realize that the filing of a petition under chapter 7 may result in the loss of property.

Chapter 13  http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter13.html
A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause."

Chapter 11  http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter11.html
The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership. (A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11

Chapter 12   http://www.uscourts.gov/bankruptcycourts/bankruptcybasics/chapter12.html
Chapter 12 is designed for "family farmers" or "family fishermen" with "regular annual income." It enables financially distressed family farmers and fishermen to propose and carry out a plan to repay all or part of their debts. Under chapter 12, debtors propose a repayment plan to make installments to creditors over three to five years. Generally, the plan must provide for payments over three years unless the court approves a longer period "for cause." But unless the plan proposes to pay 100% of domestic support claims (i.e., child support and alimony) if any exist, it must be for five years and must include all of the debtor's disposable income. In no case may a plan provide for payments over a period longer than five years. 11 U.S.C. § 1222(b)-(c).

Chapter 9 and Chapter 15 does not apply to consumers, and small business alike. To see these laws , refer to the United States Bankruptcy Court Pages.