Bankruptcy can seem confusing, but it is essentially a method for getting rid of your debt, or in some cases consolidating it for lower monthly payments. Filing a bankruptcy case requires a petition to your district-specific federal bankruptcy court, Salt Lake City, usually prepared and submitted by a bankruptcy attorney. Bankruptcy laws are set and governed by a mix of federal and state laws and may vary state to state; these laws include what property you get to keep and what you may lose, what type of debt can be eliminated or consolidated, and how the process of filing works.
You may not know this, but the right to bankruptcy is actually in the constitution. It is a constitutionally given right! Some people like to make their own judgments about bankruptcy and consider it wrong to make a claim, but it is as much your constitutional right to file bankruptcy as the freedom of speech is theirs.
If you’ve watched TV or read magazines, chances are you have seen ads for debt counseling or consolidation. These programs have nothing to do with bankruptcy, nor they will give you anything close to the protection afforded you from filing bankruptcy. Despite their claims to be “nonprofit” companies, they are not government programs and can actually get you deeper into debt. These programs may attempt to negotiate with your credit card companies to try to lower your monthly payment, but creditors are under no obligation to participate and might even sue you for non-payment. When you file true bankruptcy, however, you are legitimately protected from creditors’ harassment and movement against you in any way, no matter how much you previously owed.