you should always wait as long as possible before filing bankruptcy because you can do so only once every six years. In most cases, you will want to save this valuable option until you really need it. Also, you may not need to file bankruptcy even though creditors are threatening you because you may have no nonexempt property or wages. This means you have nothing the creditors can take from you. You can't be put in jail for failing to pay your civil debts (other than fines or other court ordered amounts).

The only way to be sure bankruptcy is right for you is to discuss your situation with a lawyer familiar with bankruptcy. Every case is different, and laws change from time to time. This article gives you some basic information, but it does not substitute for consultation with an attorney.

Some things bankruptcy can do:

Eliminate the legal obligation to pay most or all of your debts. This is called a "discharge" of debts.
Stop foreclosure of your home and allow you to catch up on missed payments.
Stop repossession of a car or other property, or, in some situations, force the creditor to return property even after it has been repossessed.
Stop wage garnishments.
Stop debt collection harassment.
Restore or prevent termination of utility service for nonpayment of previous bills (you will probably have to pay a deposit, but the deposit cannot be more than 1-1/2 to 2 times your previous regular bills according to the Arizona Administrative Code).
Get your drivers license back if it has been suspended because you didn't pay court-ordered damages for a driving accident (unless you were driving under the influence of drugs or alcohol).
Some things bankruptcy can't do

Eliminate certain rights of secured creditors. Some examples of secured debts are car loans and home mortgages. You can force secured creditors to take payments over time, but generally, you cannot keep the collateral unless you continue to pay the debt.
Discharge debts that arise after the bankruptcy has been filed.
Discharge certain types of debts, such as child support, alimony (spousal maintenance), certain other debts related to divorce, most student loans, court restitution orders, criminal fines, and most taxes.
Eliminate the obligation of a co-signer on your loan in most cases.

My advice....definitely find a lawyer and discuss your options. Have him review your financial profile and listen to his advice.

First a caveat: I am not a lawyer. Talk to one! (See below)
As a person who unfortunetely had to file himself a few years ago, there are many factors. A new law was passed a few years ago, and depending on the amount of debt and your income, there may be a possibility that you may have to make payments instead of the "slate getting wiped clean." This may have change, though, in the current economic climate.

My suggestion to you is to ask around who is the best bankruptcy attorney in your area, make an appointment and talk to him/her. They mostly like will not charge for the initial appointment, and may give you pointers on what to do. Please, call an attorney.

One question: have you talked to a credit counselor? This may be a way to avoid bankruptcy.

I know what you are going through. Good luck.

Not a layer, here...

1. Make an inventory of every single debt that you have. It doesn't matter if it is a magazine bill for $5, if you owe it, it goes in the list. Make sure that you have payment address, account number and most accurate figure for the amount owed.

2. If you have a mortgage then also make sure to have these specifics at hand.

3. Make a very detailed list of your day to day expenses. You need to know how much you usually spend on food, your utilities, entertainment (yes, this counts), etc.

4. If you have any kind of legal action in the works, say liens, or lawsuits, etc., you need to make sure you have the specifics for each at hand.

5. Do not get into any further debt until you have spoken to a lawyer and decided what to do. This is important, once you have decided to file for bankruptcy protection, you will get in trouble if you enter into more debt because it will be seen as an attempt to defraud.

Once you have all of that information at hand, ask around. You will probably be able to get a referral, instead of having to cold call for a bankruptcy lawyer. Once you find one, you should be able to meet with this attorney at no charge for at least half an hour. This attorney will be able to make the most of the meeting since you will have brought all of the information that he would need to make a snap judgment of your particular situation.

Once you have an attorney, things are going to move very fast. The moment that the filing is on the record, everything freezes. Nobody can talk to you about money, they will have to talk to your attorney. The better job you do when collecting your financial specifics, the better your attorney will be able to do this part of the job.

There is going to be a short wait until you go to your mandatory 341 meeting (http://www.moranlaw.net/341.htm) Depending on the court district, you may be required to spend a few hours before the actual meeting in a financial responsibility class/briefing/etc. Then you'll do the actual meeting.

After that you will have some hearings with the trustee and your attorney, and one or more court hearings. All you have to do is be at the right place at the right time and they'll basically take care of everything.

I cannot tell you about a chapter 7, but all you really have to do to make it through a chapter 13 is do exactly as the attorney says, and follow your trustee's plan to a T. The idea behind a chapter 13 is that you are trying to pay back some or all of the money that you are owe, so as long as the money flows and you follow instructions, you will be OK. This is why it is so important that your debt and your living expenses are accurate, because that is going to determine how much you will have to pay every month into your chapter 13. If you are on a 100% plan, it means that you are paying back every cent that you owe, with interest.

In summary: accurate documentation before filing is the key, it is going to determine how easy/hard you will go through the whole process.

try here it can help

http://www.payingpaul.com/personal-bankruptcy.php



Filing bankruptcy a guide

http://www.essortment.com/all/filingbankruptc_rnqg.htm


Before You File for Personal Bankruptcy

http://www.essortment.com/all/filingbankruptc_rnqg.htm

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre41.shtm

Free bankruptcy evaluation

http://www.bankruptcyhome.com/


http://www.bankruptcyaction.com/

Personal Bankruptcy Lawyer - Be Honest About Your Finances


http://ezinearticles.com/?Personal-Bankruptcy-Lawyer---Be-Honest-About-Your-Finances&id=1630003


How much does it cost

It may cost an individual between $1,400 and $1,700 to file for personal bankruptcy.

sources:

http://www.collection-calls.ca/faqs/personal-bankruptcy.html


another sources

http://www.pslegal.org/Publications/Bankruptcy/Index.htm

here also clean good details i hope it will help you


http://www.starrandstarr.com/lawyer-attorney-1354127.html

The process to declare bankruptcy has become more difficult over the years, in the end your best best is to hire a bankruptcy lawyer and have them help you through everything. For the best description of the steps involved you may want to read up at this source.

It costs around $3500 which covers the attorney fees and court costs (can vary by state). If you are filing Chapter 7, most attorneys will require payment in advance, with Chapter 13 some of the fees can be incorporated into the 60 month payment plan.
Most attorneys will offer a free consultation where they will cover all of the issues and options.
Don't be afraid to take this step to get your life back on track.

not much to add to the great responses above, but I wanted to let you know about another option. If you are truly low-income, call a few legal clinics in your area. Law schools usually have a clinic that does bankruptcy law. My school does bankruptcy cases for $25 (or even cheaper if you are truly in need). You will be dealing with students and the process may be slower and not as stream-lined, but it will be way cheaper.

Chapter 7 and Chapter 13 are the two main chapters under which individuals can file personal bankruptcy. Chapter 7 bankruptcy is a liquidation of assets while Chapter 13 bankruptcy is a reorganization where the debtor creates a three to five year payment plan.

The primary reasons for filing personal bankruptcy are unforeseen medical expenses, excessive credit card debt, loss of employment, and divorce. Needless to say many of these events create not only financial difficulty but also a tremendous amount of disruption and distress in and of themselves. This makes it especially important that individuals consider all available options and bankruptcy alternatives to make sure whatever action they settle upon is in their long term interest.

If one determines that personal bankruptcy is the best option available then one should learn more about the federal bankruptcy law. Bankruptcy is a important decision and the law and it application to one's particular situation can be very complicated. It is generally recommend that one consult with an attorney with experience in the personal bankruptcy field. If one feels comfortable with attempting the bankruptcy process without an attorney there are online bankruptcy services that can be of assistance. It is also possible to proceed by completing the bankruptcy forms on one's own but this could be very confusing and one should proceed with caution.