Bankruptcy in the United States is the method that allows individuals and businesses to seek relief for their debts.  The bankruptcy process will look at the total amount of debts and liabilities and provide a method where the debtor will be able to keep a portion of their assets while relieving them of some or all of their debt.  Some types of debts cannot be discharged.

Bankruptcy is more common now with the rise of easier credit terms and the stigma regarding it has started to fade. Bankruptcies can be caused from major negative financial events, the loss of a job and large medical bills and divorce are common reasons that can cause the need to declare bankruptcy.

If you find that your debts greatly outweigh your income and assets then bankruptcy may be a good choice for you. It’s important to seek the advice of a bankruptcy attorney to see if you qualify and if bankruptcy is right for you.