Here are the basic facts about bankruptcy which will give you a little background so you can discuss your situation knowledgeably:

The types of bankruptcy for an individual are:

• Chapter 7 Bankruptcy, to sell what you own (certain items are exempt)
• Chapter 13 Bankruptcy, payment plan

In general what determines which to use is the level of debt. If the debt is too large to work out a payment plan, i.e. you will not be able to pay off even a portion of the debt level, Chapter 7 is for you. If the debt is lower, and you just need a little help, then Chapter 13 is probably your best choice. Additionally, under rare cases you could use Chapter 11, which is usually for businesses.

Bankruptcy Abuse Provision and Consumer Protection Act of 2005 has resulted in a lot of talk lately, and seems to make bankruptcy more complicated. But it shouldn't; all this act does is make it harder for people to file Chapter 7. This also makes it more important to pick a good lawyer, so you can qualify for the most advantageous technique for you.

Another important fact is the different treatments for different types of loans. In particular student loans are mostly exempt from bankruptcy. This could have a grave affect if you are pursuing student bankruptcy. The easiest of all loans to adjust in bankruptcy would have to be from credit cards, or other unsecured loans. Another of the more common loans reduced through bankruptcy are health-care related. This could be a major benefit for senior bankruptcy due to the raising cost of senior health care.

Before you declare bankruptcy you should also know how this impacts your credit history, and other ramifications.