Your life can get excessively difficult and complicated due to severe financial difficulties.
In order to deal with financial crises in an efficient and methodical way, it's advisable to seek professional help.
There are several debt solutions to help you emerge out of a debt situation.
However, a knowledgeable legal attorney can provide appropriate advice and guidance required to decide on the right option for you.
Among the various available options, bankruptcy is one of the most significant ones, which can help in clearing all unsecured debts efficiently.
While bankruptcy is the process of legally declaring your inability to pay off debts, personal bankruptcy is an option available only to individuals and not to organizations.
Individuals can choose between chapter 7 bankruptcy and chapter 13 bankruptcy depending on personal requirements, circumstances and conveniences.
Bankruptcy courts have made certain compulsory rules related to bankruptcy that need to be strictly followed for a successful petition.

• During the time of the bankruptcy filing, it is compulsory for individuals to undergo a credit counseling course under a certified credit counselor, and present the court with Bankruptcy Counseling Certificate.
  
• It is also necessary to undergo a means test in order to prove that your annual income does not exceed the median income for your family size in your state.
  
• Bankruptcy courts demand certain important documents for filing for personal bankruptcy.
  These documents include a list containing the names of creditors, information on current income, current personal expenditures and photo identification.
  Bankruptcy laws require you to provide the court with a proof your income for the last six months, including a copy of the paycheck, bank records, a pay stub, rental agreements and all other types of income proof you may have received during the time period of six months prior to the bankruptcy filing.
  Besides these, it is also necessary to submit the tax returns and transcripts from the past four years.
  
• Bankruptcy cannot help you get rid of all kinds of debts.
  There are certain loans that you would have to continue to make payments for even after you have been declared bankrupt by the court, such as alimony and child support, tax debts, student loans etc.
  
• The court does not necessarily seize all your assets if you file for personal bankruptcy.
  There are provisions in the law that allows you to keep some of your valuable properties like clothing, furniture, insurance, household items, tools, jewelries, and pension funds, vehicles that are not expensive and sometimes even your home.
  The rules, of course, vary from state to state, and person to person based on individual circumstances.
  
• In certain states, individuals are allowed to opt for federal bankruptcy exemptions in the place of state bankruptcy exemptions.
  It is necessary to assess and compare the asset values in order to decide on the best option for you.
  However, the rule is that you have to consistently stick to one option throughout.
  
• The law does not prohibit individuals from filing for bankruptcy more than once.
  You can file for it as many times as you require based on your situation.