Bankruptcy

Faced with mounting debt consumers search for a way out. Personal bankruptcy is the best solution for some, but others are better off working out their debts with their creditors, or even taking no action at all. There is no one size fits all solution. The best solution for each family and each individual depends on the specific circumstances – including the debtor's age, type of debt, income, and assets.

There are two types of personal bankruptcy -- Chapter 7, and Chapter 13. Chapter 7 is liquidation bankruptcy in which a consumer can liquidate and discharge certain debts. The outcome is that the consumer no longer owes the discharged debts at all. In Chapter 13 the debtor sets up a payment plan to repay their debts within a certain time period.

Many of our FALDP members prepare bankruptcy petitions for consumers. Please contact your petition preparer directly to find out about specific services and methods of doing business. Some of our document preparers have bricks and mortar stores, and others are completely virtual businesses.

Bankruptcy petition preparers charge a few hundred dollars. for the documents required in a Chapter 7 or Chapter 13 Personal Bankruptcy petition. As with any other process, a petition preparer may not give you legal advice, and may not represent you in court.

Your preparer is not allowed to tell you which type of bankruptcy you should file. Please educate yourself on this site and elsewhere to find out whether Chapter 7 or Chapter 13 is appropriate for your situation.