Is Bankruptcy An Option For You?
Do you know if bankruptcy is the right solution for your financial situation? If you are unable to meet your debt obligations and have explored all possible alternatives, bankruptcy may be an option. 
Bankruptcy is a legal process that can help you repay or discharge debts under the protection of the federal bankruptcy court. There are two main types of bankruptcy for consumers – Chapter 7, also known as liquidation, and Chapter 13, also known as reorganization. We encourage you to learn more about the bankruptcy process and potential implications in our bankruptcy FAQ's.
Pre-filing Bankruptcy Counseling
If you are considering bankruptcy, the federal government requires you to obtain a pre-filing bankruptcy certification from an approved credit counseling agency. Pre-filing bankruptcy counselors can provide you with the necessary counseling and help you understand the bankruptcy process and implications, as well as alternatives. To learn more about pre-filing certification, a great place to get started is to visit http://www.justice.gov/ust/
Post-filing Bankruptcy Debtor Education
If you ultimately decide bankruptcy is appropriate for your financial situation, the federal government requires you to complete a course in financial management prior to discharging any debts. Visit the Federal Bankruptcy Trustees' website to learn more about post-filing bankruptcy debtor education and to find a provider near you .
Bankruptcy Alternatives
We encourage you to explore all possible alternatives to bankruptcy before making the decision to file. Your options may include:
- Negotiating with your creditors to work out a repayment plan and pay off the debt.
- Seeking assistance from a non-profit credit counseling agency like Take Charge America. Certified counselors can provide you with educational resources and suggest solutions for your financial challenges.
- Reaching a settlement with creditors, which will lower your debt if you agree to pay certain fees.
