Bankruptcy is not free or cheap. As you consider bankruptcy, you will have a number of decisions to make. Assess your situation to decide if bankruptcy is the best solution to the debt problem. Then, decide which type of bankruptcy to file. There may be debts you can negotiate.
Exemptions require pre-planning.
Consult a lawyer to help you choose your best options. The tax consequences of bankruptcy can vary dramatically, depending on the way the bankruptcy is structured. Planning before you file for bankruptcy, with a tax attorney or certified public accountant, may be money well spent. There are four provisions in the bankruptcy laws. Chapter 7 is used most often by people who are unemployed or very deeply in debt to obtain a discharge of debt.