Usually the last resort that people will take is filing for bankruptcy. The sad conclusion that there are no other options usually arrives when creditors begin to lose their patience, and the payment schemes that you have offered begin to fail. Usually under the weight of punitive interest that your creditors apply. Once the decision has been made to file for bankruptcy, then you should begin to prepare yourself before going to bankruptcy court, and have your facts and figures as ready as possible. You should go there armed with the knowledge that not all your debts can be discharged through bankruptcy. In fact many of these debts will continue to be cleared off long after your bankruptcy has been discharged.

A typical example is the debtors responsibility to pay either alimony or child support. Bankruptcy court does not view lightly the failure to meet these commitments, and the most stringent of collections methods will be applied to ensure that fact. The bankruptcy abuse prevention and consumer protection act was drawn up especially, more or less to prevent such devious acts from taking place Continue reading »