Bankruptcy Resources

Learn about the ins and outs of bankruptcy and find the resources you need to navigate this complex process.

Eligibility Criteria for Bankruptcy

Bankruptcy is available to individuals or businesses who meet certain eligibility criteria, including:

There are several types of bankruptcy, including:

  1. Penalty Collection Act (PCA) Bankruptcy: filed when creditors have previously sued the debtor and obtain a court order;
  2. Chapter 7 Bankruptcy: liquidation bankruptcy where assets are sold to pay off creditors.
  3. Chapter 13 Bankruptcy: reorganization bankruptcy where debtors create a repayment plan to pay off debts.

After determining eligibility, individuals or businesses can file for bankruptcy by completing and submitting the filing statement form to the court:

The filing statement is used to disclose all relevant financial information and debts owed.

Once bankruptcy is filed, the debtor will receive a discharge of their debts, meaning they are released from liability for those debts:

  • Creditor claims over 50% of the debtor's debts are discharged.
  • The debtor must attend a credit counseling session within two months after filing to check on progress and receive guidance.
  • Bankruptcy can have long-term effects on credit scores, but debtors can work towards rebuilding their credit over time.