Then, you file a petition with the U.S. Bankruptcy Court. The petition includes basic information about you, including your financial status. Once the petition is filed, most debt collection practices must stop. A bankruptcy trustee will then be appointed to oversee the bankruptcy process. A bankruptcy judge may reject a filing if he or she decides that bankruptcy is not justified.
Information regarding bankruptcy stays in a consumer's credit report for ten years.
Someone who has filed for bankruptcy may have difficulty obtaining credit or may be offered unfavorable credit terms. A consumer who is considering filing bankruptcy should carefully consider these serious consequences. Terms and Conditions , Copyright Policy , and Privacy Policy . The Learning Company. All rights reserved.