There is no one correct answer to the question. The decision of whether or not a debtor should seek the protection of the federal bankruptcy laws is highly personal and individualized. It is usually not a decision that is reached easily or quickly. Before filing for bankruptcy, a debtor needs to know that not all debts are dischargeable. Put another way, not every debt that is owed can be wiped out or eliminated. For example, child support payments cannot be discharged in bankruptcy.

Bankruptcy is a method by which an individual or a business that is overwhelmed with debt can seek to be relieved of the debt. Alternatively, a debtor can seek reorganization. Most individual debtors or consumers who cannot pay their debts can file for bankruptcy, as can many companies, corporations, or businesses.

Bankruptcy law is federal, rather than state, law. Consequently, the United States Bankruptcy Courts have “jurisdiction” control and/or supervision of bankruptcy cases. There is at least one bankruptcy court located within each state. There are three bankruptcy courts in the Middle District of Florida.

The Bankruptcy Code is a group of federal statutes or laws that debtors and bankruptcy courts must follow. There are several “Chapters” of the Bankruptcy Code; a debtor must file a bankruptcy petition pursuant to one of these Chapters. For example, a debtor — either an individual or a business — might select “Chapter 7” in order to “liquidate” or wipe out many of the debts. A Chapter 7 “straight” bankruptcy allows debtors to make a “fresh start.” A Chapter 7 debtor will not have to repay many of his or her debts because the debts have been discharged.

Chapter 7 Eligibility and the “Means Test”

A debtor starts the bankruptcy proceedings by filing a “petition” in the appropriate bankruptcy court. A petition consists of the paperwork that is required to establish or open the bankruptcy case. The debtor must list all of his or her assets and debts in the petition. He or she must also provide other information, much of which might seem private or possibly embarrassing. The details of a debtor’s financial situation are, however, crucial in a bankruptcy proceeding; thus, a bankruptcy court will need such information.

No, you are not required to be represented by an attorney during bankruptcy proceedings. You may wish, however, to explore all your options before filing for bankruptcy without having first sought legal counsel. An attorney will be able to help you determine whether or not filing for bankruptcy is the wisest decision for you. An attorney will also know about any changes in the bankruptcy laws. As with most areas of law, bankruptcy law can — and does — change. For example, a lawyer would be able to advise a debtor of any recently enacted or passed laws that affect the debtor’s ability to wipe out or liquidate most of his or her debts. An attorney should be able to help a debtor that is considering filing for bankruptcy become aware of any possible changes or “reform” in the bankruptcy law that might make it harder or easier for that debtor to wipe out his or her debts.