Bankruptcy is relief for Debtors who are having problems paying their obligations providing them with a fresh start.

Through bankruptcy Debtors have the option of either maintaining their secured debt (home, car, etc) or surrendering the secured items.

Chapter 7 bankruptcy, refers to Debtors with minimal disposable income and requires no monthly payments.

Chapter 13 bankruptcy, refers to debtors with an excess of $200.00 in disposable income and requires monthly payments to the trustee in an amount to be determined by completing the income/expense schedules.

All debtors qualify for either kind of bankruptcy through a means test provided by the bankruptcy court which is based on the Debtors income and family size.

Upon filing a bankruptcy petition an "automatic stay" immediately goes into effect. That means that creditors can do nothing to collect a debt, including foreclosing on real estate, repossessing vehicles, continuing litigation, collecting judgments, telephone calls and mailings.

State Court lawsuits and judgments are wiped out in bankruptcy unless the lawsuit or judgment is a result of intentional wrongdoing.

Lawsuits for medical bills, credit cards or uninsured accidents are dischargeable debt.

Non-Dischargeable debts are recent taxes, domestic support, intentional wrongdoing, criminal fines, federally insured student loans.