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When filing bankruptcy for the first time, people have many questions. A bankruptcy FAQ can explain simple and basic concept of bankruptcy such as how to file bankruptcy, what types of bankruptcy can a person file, and how much it costs to file bankruptcy. A bankruptcy FAQ often discusses chapter 7 bankruptcy and chapter 13 bankruptcy in detail.

The first question that comes to people’s mind on the subject of bankruptcy and often the first question in a bankruptcy FAQ is how to file bankruptcy. Knowing how to file bankruptcy properly will avoid many problems that can result on a legal standpoint. The first step of filing bankruptcy is to file a petition and then pay all the needed fees such as administrative fees and the filing fee.

There are more than one type of bankruptcy to file. Any good bankruptcy FAQ will start with distinguishing between different types of bankruptcy such as chapter 7, chapter 13, chapter 11 and chapter 12 bankruptcy. A person seeking to file bankruptcy needs to know in detail what type of bankruptcy is the best for his/her situation.

For anyone with lots of debt, filing chapter 7 seems like the best idea and a bankruptcy FAQ will explain why. Most debts are discharged when a chapter 7 is filed however not all. The major drawback of filing chapter 7 is that almost all assets of the filer are liquidated and proceeds used to pay off debts. There are certain assets that are exempt but most people will lose all their assets in the process.

Chapter 13 bankruptcy is often the highlight of a bankruptcy FAQ because it is the most common type of bankruptcy filed nowadays. In a chapter 13 bankruptcy, debtor filing chapter 13 comes up with a repayment plan that the court approves to pay off most of the debts to the creditors. Some debts are discharged but most are not.

Another popular question in a bankruptcy FAQ is how much it costs to file bankruptcy. Some people think that it costs a lot to file bankruptcy. The truth is that the filing fee and administrative fee are only a few hundred dollars. However, if you hire a bankruptcy attorney, the cost goes up because of the attorney fee and not the filing fee.

Different types of debts are discharged differently. It also depends on the type of bankruptcy filed. The bankruptcy laws have so many provisions and interpretations and each debt is considered separately. A bankruptcy lawyer can help you interpret if a debt will be discharged by the filing or not.

There are so many questions about bankruptcy that a person seeking to file bankruptcy needs to know. A bankruptcy FAQ should give an overview of filing bankruptcy as well as answers important questions that most people have encountered. Do not file bankruptcy if you have other options.