Chapter 5: Considering bankruptcy

Bankruptcy should be the method of last resort for solving your debt problems, but if you must go that way, here’s what you need to know.

Since filing for bankruptcy will affect your life for probably seven or 10 years, it’s not a move to be made lightly. This chapter explains in detail what bankruptcy is, the most common types (Chapter 7, Chapter 9, Chapter 11, Chapter 12 and Chapter 13), the myths about filing for bankruptcy, what you can expect after you’ve filed and, most important, how to recover from it.

What you can expect to learn from this chapter:
  • What is bankruptcy?
    Here’s an overview of bankruptcy from start to finish, including new rules that went into effect in 2005.

  • 5 most common types of bankruptcy

    This thumbnail view of the different types of bankruptcy explains who can file under which type.

  • Are you a candidate for bankruptcy?

    Understanding the consequences of bankruptcy — financially, emotionally and for your future — is essential before you consider filing.

  • 12 myths about bankruptcy

    Think all your debts will be wiped out if you file? Read this chapter to find out the truth about this and other assumptions.

  • Life after bankruptcy

    This step-by-step guide will tell you how your life will most likely change after you’ve declared bankruptcy.

  • 10 ways to bounce back from bankruptcy

    Declaring bankruptcy should be viewed as a beginning, not an end. Here’s how to rebuild your financial life.