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Bankruptcy law is federal law, and all bankruptcy cases are handled in federal court. Filing bankruptcy can immediately stop debt collection actions against you. Bankruptcy is a legal process to help debtors (people who owe money) get relief from the debts they cannot pay and, at the same time, help creditors (people. After you have decided to file for bankruptcy, the first step is to file a petition with the Bankruptcy Court. On the petition, all your of your debts and.

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To qualify for Chapter 7 bankruptcy, you must pass the means test. The means test looks at your average monthly income for the six months preceding your filing. In a bankruptcy case under Chapter 7, you file a petition asking the court to discharge your debts. The basic idea in a Chapter 7 bankruptcy is to wipe out . You can go bankrupt in one of two main ways. The more common route is to voluntarily file for bankruptcy. The second way is for creditors to ask the court to.

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How To File Chapter 7 Bankruptcy in 10 Steps · Collect Your Documents · Take Credit Counseling · Complete the Bankruptcy Forms · Get Your Filing Fee. Definition of file for bankruptcy.: to officially ask to be legally recognized as bankrupt The company filed for bankruptcy in July. The debts that bankruptcy can help with are known as private, unsecured debt. If you have these kinds of debts, you may be able to get rid of them by filing for.