Bankruptcy - Dealing With It
Bankruptcy can be caused by a catastrophic illness or event, as well as by living beyond our means. If you are having severe financial problems, talk to family members and contact an attorney who specializes in bankruptcy and debt issues for advice and information. Be proactive and not reactive.
The most typical types of personal bankruptcy are governed by federal bankruptcy laws and are handled in special federal bankruptcy courts. Chapter 7 bankruptcy is a procedure where many of your debts are wiped out. There are exemptions regarding property, and there are different categories of debts. Unsecured debts are exemplified by credit cards and medical bills. Secured debts are exemplified by a home mortgage or car loan. The other common procedure is governed by Chapter 13. In this proceeding, the goal is to pay off many of your debts through a court regulated process and not to try to wipe them out.
MarketWatch's 2018 article 'Why are so many Americans over 65 declaring bankruptcy?' is an important read. If possible, consult with a bankruptcy specialist.