| What is involuntary bankruptcy?
Creditors, rather than the debtor, file the petition in bankruptcy.
Should I file for bankruptcy?
This is a personal decision, greatly influenced by the amount of serious debt and your ability to meet the original payments or pay the full amount. Being hassled by creditors when you are broke is nerve-wracking for starters. Secondly, the decision to file should not be made solely to stop demanding creditors. Though filing temporarily stops creditors from engaging in out-and-out enforcement lawsuits, creditors can apply for "relief from stay" and then continue their collection efforts.
Depending on your circumstances, bankruptcy may or may not make sense for you. If after the bankruptcy you will be no better off than you were before, why do it?
Further, the critically important date of filing often determines whether or not certain debts will be discharged. (This is to keep people from rushing out to buy a boat, and then declaring bankruptcy the next day). The decision as to when to file a bankruptcy petition should be based upon the facts of the individual circumstances.
Be aware that you must divulge complete financial information in a bankruptcy petition. Compiling a complete list of debts and creditors is absolutely critical to the bankruptcy process. If you inadvertently omit listing a debt, it may or may not be wiped out, depending on your circumstances. A bankruptcy attorney will help ensure that you are following the appropriate form and content of the filing.
What happens to lawsuits and attachments that have been filed prior to a declaration of bankruptcy?
Once the petition is filed, there is an automatic stay (or halt), of most lawsuits and attachments against you. Criminal actions, lawsuits to establish paternity, litigation to collect child support or alimony, and IRS audits are not stopped.
Does a bankruptcy filing stop a wage attachment?
Yes.
What is a discharge?
A "discharge" in bankruptcy means that you are legally free and clear of any obligation to repay certain debts; they are gone. The creditor no longer has any right to collect debt. The debtor no longer has any obligation to repay it.
The timing of the discharge varies, depending on the chapter under which you file. In a Chapter 7 bankruptcy, for example, you normally receive a discharge just a few months after the petition is filed. In a Chapter 13 bankruptcy, the discharge typically occurs when you have successfully finished the repayments.
Can I keep some of my credit cards?
Some credit card companies will allow you to keep a credit limit if you repay some of your debt.
Are student loans dischargeable by bankruptcy?
No, not like they used to be, although you can reduce the amount you owe and discharge some part in a Chapter 13 if you can show hardship. But this is very difficult to do.
Can I repay a creditor if I want to – even after bankruptcy?
Yes, but the Bankruptcy Trustee must determine that you can afford to.
Does bankruptcy protect my co-signor?
In a Chapter 7 bankruptcy, co-signors are not protected by the automatic blocking of your creditor's collection efforts; creditors are free to go after your co-signor(s)).
Under a Chapter 13 bankruptcy, your co-signor receives the same protection as you under the automatic stay only if the debt is being paid for in full. | 
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