Creditors can be credit card companies, mortgage companies or a neighbor who lent you money. Before you file for bankruptcy, you need to figure out what bankruptcy will or will not do for you. For example, you will still have to pay alimony and child support after you file for bankruptcy. Alternatives to bankruptcy Our bankruptcy system must be viewed in a larger context of insolvency, the inability of an individual to pay his or her bills as they fall due. Individuals and businesses that are insolvent for one reason or another will confront a number of practical and legal problems.
Bankruptcy is one solution.
Once you have decided that bankruptcy is your best alternative you will need to take a number of steps to commence the action in the bankruptcy court. If you have decided to handle your own bankruptcy, you will need to fill out and file your bankruptcy forms and pay a filing fee to start the bankruptcy proceeding. Hopefully you'll never have to face bankruptcy as a debtor, but chances are you may have to face it as a creditor. If someone who owes you money goes bankrupt, you need to know how to navigate the bankruptcy system and enforce your rights. Work with an experienced lawyer in your state.