The stigma onced attached to those that file bankruptcy is all but gone, due in large part to the widely reported bankruptcy filings of celebrities, and even some citiy and county governments. Existing creditors may continue to grant 'new' credit based on a re-affirmation agreement made during the bankruptcy process. Usually the credit limit is equal to the security given and is increased as the debtor proves his or her ability to pay the debt. Most creditors report that after a 2-3 year period following bankruptcy, the bankruptcy has little effect on the creditor's decision to grant credit. A borrower's bankrutpcy options on student loans are almost nill.
Bankruptcy law is federal law, making the filing fee for bankruptcy the same in every state.
The U.S. Congress in the 1994 Bankruptcy Reform Act, authorized non-lawyer Bankruptcy Petition Preparers to assist debtors with the paperwork and routine process of filing bankruptcy. The meeting is presided over by a trustee, without a judge. The trustee generally will ask a debtor questions he or she may have about the information in the debtor's paperwork, for example, if their income has changed since they filed. The entire process from the date of filing to final discharge is normally 90-120 days.