Bankruptcy

Bankruptcy is a difficult and stressful process to go through. It can be overwhelming to make the decision to file for bankruptcy, and it’s important to understand all of your options before making any decisions.

In this article, we will discuss:

  • What bankruptcy is
  • The different types of bankruptcy available
  • The pros and cons of filing for bankruptcy
  • How the process works
  • How you can rebuild your credit after bankruptcy

We’ll also discuss alternatives to filing for bankruptcy as well as some frequently asked questions about this topic.

With this in-depth knowledge on hand, you’ll be able to make an informed decision that is right for you and your financial future.

Key Takeaways

  • Bankruptcy is a difficult and stressful process that negatively affects credit score and may take years to improve.
  • Before filing for bankruptcy, it’s important to explore other options for managing debt such as debt consolidation, credit counseling, and voluntary surrender.
  • Proper preparation and understanding of bankruptcy process can lead to successful debt relief.
  • Rebuilding credit after bankruptcy is possible with dedication and planning, including responsible use of existing accounts and timely payments.

What is Bankruptcy?

Bankruptcy is when individuals or businesses can’t pay their debts—it’s a tough situation, but it can be solved. It’s important to understand what bankruptcy is and the different types available so that you can make an informed decision about how best to handle your financial issues.

There are several options available for managing debt including financial counseling, debt consolidation, credit reports, and secured loans. Additionally, lien avoidance and property exemptions may help reduce the amount of debt owed while chapter 13 reorganization can be used to restructure payment plans.

It’s important to know the consequences that come with filing for bankruptcy as they will have long-lasting effects on both your personal life and finances. Some common consequences include difficulty obtaining credit in the future, damage to one’s credit score that could remain for up to 10 years, and potential wage garnishment if certain payments aren’t made on time.

Bankruptcy does not always mean that all of your assets will be taken away—some states even offer property exemptions which enable people who file for bankruptcy to keep certain assets like jewelry or cars—but it’s still important not to depend on such exemptions when filing for bankruptcy as they vary from state-to-state.

Bankruptcy should only be considered after other options have been explored because there are significant legal costs associated with filing in addition to any fees charged by creditors or lenders. Before making any decisions about filing for bankruptcy, it’s highly recommended that you speak with a qualified attorney dealing in such matters as they will likely provide valuable insight into whether or not this is the right move for you given your individual circumstances.

Due diligence pays off when considering bankruptcy; understanding all of the different types along with their respective benefits and drawbacks allows you to determine which option offers the best chance at achieving your desired outcome without taking unnecessary risks or leaving yourself open to further loss down the line.

As such, taking time now to explore each type of bankruptcy carefully can save a great deal of hassle later on down the road. Moving onto exploring the different types of bankruptcies then….

The Different Types of Bankruptcy

Navigating the different types of bankruptcy can feel like walking through a maze – each path leading to a different outcome. Knowing which option is right for you requires an understanding of the various forms, and it pays to seek professional advice before making any decisions.

The two main types of bankruptcy are Chapter 7 and Chapter 13, and each has its own unique advantages. When assigning assets and evaluating debts in order to decide which type is best for your situation, it’s important to be familiar with the differences between them.

Credit counseling is key when filing for either Chapter 7 or Chapter 13 bankruptcy. A fresh start may be available depending on the amount of debt you are carrying, but budgeting tips and financial advice from a qualified counselor will help ensure that mistakes made in the past don’t repeat themselves in the future.

Debt settlement should also be considered when assessing eligibility for either type of bankruptcy; knowing what kind of financial hardship can be relieved under current laws will maximize the benefit associated with filing.

Beyond these basic principles, there are other considerations specific to each chapter that must be taken into account before making any decisions about filing. In particular, Chapter 7 offers liquidation as a means for repaying creditors while allowing individuals to keep certain items such as motor vehicles or home furnishings; this differs significantly from Chapter 13 which focuses more heavily on reorganizing debt rather than eliminating it entirely. Both have their merits however so understanding how they work together is important if you want to get back on track financially.

The best way to determine if either type of bankruptcy is right for you is by speaking with experienced professionals who can provide additional guidance and support throughout the process. They’ll provide valuable insight about how changing laws may affect your case as well as potential areas where new strategies might yield better results overall – something that should definitely factor into any decision about whether or not filing makes sense in your circumstances.

With their help, you can move forward towards a brighter financial future without worrying about heavy debt burdens holding you back every step of the way. Taking advantage of available resources now could mean building real security down the road – so taking action sooner rather than later could prove invaluable in achieving long-term success and peace of mind moving forward.

The Benefits of Filing for Bankruptcy

Filing for bankruptcy can provide much-needed relief from overwhelming debt, allowing you to take back control of your finances and start fresh. By understanding the benefits of filing for bankruptcy, you’ll be better equipped to make an informed decision about how best to manage your debt.

Bankruptcy is a legal process that involves debt consolidation, credit counseling, asset liquidation, and following the bankruptcy law. Depending on your financial situation, Chapter 7 or Chapter 13 may be the right option for you.

With Chapter 7 bankruptcy, you can discharge most unsecured debts such as medical bills and credit card balances while keeping certain assets exempt from liquidation, including cars and home equity in some cases. Chapter 13 allows for more flexibility when dealing with secured loans such as mortgages or car payments by allowing individuals to reorganize their debts into a three to five year repayment plan that fits their budget. If approved by the court, all collection activity stops until the repayment program is completed successfully.

In addition to discharging existing unsecured debts and restructuring secured ones, filing for bankruptcy also provides an opportunity for post-bankruptcy planning. This includes developing strategies on how best to rebuild one’s credit score after completing the process successfully. Credit counseling services are often available through local agencies that help individuals understand how they can move forward once their debts are discharged or restructured after filing.

Once the financial burden of excessive debt has been lifted from your shoulders through filing for bankruptcy, it’s important to establish new spending habits and formulate a plan so you don’t find yourself in the same position again down the road. With access to helpful resources that support these efforts such as online budgeting tools or personal finance books written with beginners in mind, taking control of your finances becomes easier than ever before when armed with knowledge about how best to take advantage of this powerful tool known as bankruptcy.

With careful consideration and preparation, transitioning into life post-bankruptcy can be done confidently – setting yourself up with sound financial footing moving forward.

The Disadvantages of Filing for Bankruptcy

Despite the potential benefits of filing for bankruptcy, it’s important to consider the drawbacks before making a decision. Do you know what risks are associated with filing for bankruptcy?

The financial impact of bankruptcy can be far-reaching. Filing for bankruptcy will have a negative effect on your credit score and it may take several years to improve your score after filing. Additionally, while filing for bankruptcy may reduce some debt, this doesn’t always guarantee that creditors will forgive all debts.

Those who file must also allocate assets carefully in order to comply with bankruptcy laws.

When considering whether or not to file for personal bankruptcy, it’s important to seek legal advice from an experienced attorney who understands the nuances of local and federal laws regarding debt relief. An experienced attorney will be able to provide guidance on the most appropriate course of action as well as help ensure that all paperwork is properly completed and filed correctly.

When planning ahead financially, understanding how each decision affects long-term goals should be considered when deciding whether or not to file for personal bankruptcy protection. This includes researching various options available and seeking professional financial advice that can help create a successful plan for improving financial stability in the future without relying on bankruptcies as a form of debt relief.

Moving forward carefully with sound financial planning can make all the difference when facing difficult decisions about debt reduction strategies. With careful consideration given to these factors, one can better understand their situation and plan accordingly as they move through the bankruptcy process.

The Bankruptcy Process

Understanding the bankruptcy process can be challenging, but you don’t have to go through it alone. Knowing what to expect and having a plan of action will give you the best chance of success in regaining your financial footing.

The first step is to make sure that bankruptcy is right for your situation. A credit counseling session or debt consolidation could provide you with more favorable debt relief options than filing for bankruptcy. After determining that bankruptcy is the best course of action, it’s time to begin preparing all the paperwork required by the court. This includes providing proof of income, expenses, assets, and debts. You’ll also need to complete credit counseling as part of this process.

The next step involves negotiating with creditors and asset protection planning in order to keep as much of your property as possible while still being able to pay off any outstanding debt obligations. It’s important at this stage to take into account any long-term financial goals such as rebuilding credit or saving for retirement so that post-bankruptcy planning is done correctly.

Finally, filing for bankruptcy requires navigating a complex web of laws and regulations at both state and federal levels so having an experienced attorney on hand can make this process much easier and help ensure an optimal outcome from the proceedings.

Navigating these steps successfully requires knowledge, diligence, patience, and perseverance – but by proceeding carefully you can achieve a fresh start financially without sacrificing your hard-earned assets unnecessarily. There are no guarantees when going through such a complicated legal procedure but understanding the available options and staying focused on reaching your goals will put you in a better position when it comes time for making decisions about how best to manage your finances after emerging from bankruptcy proceedings.

The cost of filing for bankruptcy should always be weighed against potential benefits so that an informed decision can be made before committing yourself completely.

The Cost of Bankruptcy

The cost of bankruptcy can be intimidating, but how much it will actually cost you depends on several factors. Debt negotiation and credit counseling are two common options for those looking to avoid foreclosure while managing their debt. These services may come with a fee, depending on the provider, so it is important to research what fees may be associated with them. Additionally, budgeting tips, money management advice, and legal advice can all help you understand the financial literacy necessary for making responsible decisions about your finances before filing for bankruptcy.

In the following table, you’ll find some common costs associated with various aspects of bankruptcy:

ServiceCostDescription
Debt Negotiation$50–$500+Negotiate a settlement between creditors and debtor
Credit Counseling$15–$50/sessionReceive guidance from an accredited professional
The Cost of Bankruptcy

Budget Planning | Free–$100+ | Create a budget plan that fits your income

Financial Literacy | Free–$200+ | Learn more about how to manage your finances properly

Legal Advice | $0–$400/hour | Seek counsel from an experienced attorney

Money Management
Tools & Tips
Free–$100+ Get access to online tools or resources for tracking spending and creating budgets

Overall, preparing financially for a potential bankruptcy requires careful consideration of all expenses involved in order to make sound decisions. It does not have to be expensive if researched thoroughly; there are numerous free resources available as well as low-cost providers who can help navigate the process successfully. Ultimately, understanding the true cost of bankruptcy is essential in making sure that you are adequately prepared when taking this step forward towards financial freedom.

Preparing to File for Bankruptcy

Filing for bankruptcy can be intimidating, but with proper preparation and resources, it doesn’t have to be. Debt relief is possible through credit counseling and financial planning.

The first step in preparing to file a bankruptcy petition is understanding filing requirements and applicable exemptions that protect assets from liquidation. It’s important to find a qualified attorney who specializes in state laws to receive expert advice on asset protection and debt relief.

Gathering relevant documents, such as bank statements, tax returns, and paycheck stubs, is necessary for court filings and calculating disposable income. Non-liquidated assets, such as real estate, may need special attention before filing for bankruptcy protection.

Researching different types of bankruptcies, like Chapter 7 or 13, helps determine the best option for individual financial situations and goals. Understanding which creditors must be included in filings and which debts can be discharged gives a better idea of the repayment plan after discharge.

Evaluating available credit counseling services is often required before filing for bankruptcy protection or after discharge of debt obligations. Credit counselors provide useful advice regarding budgeting techniques and strategies for managing finances effectively.

With this information, individuals can confidently proceed towards a brighter future free from crippling debt burden after obtaining debt relief through the legal processes associated with filing for bankruptcy protection.

How to Find a Bankruptcy Attorney

Finding a qualified bankruptcy attorney can be the key to successfully navigating the complex process of filing for debt relief. It’s important to take time and care when finding a lawyer who specializes in bankruptcy laws, as they are essential in providing legal advice while also representing your interests during court hearings.

Credit counseling agencies and financial planning services may be able to provide referrals, but it’s up to you to research potential attorneys and make sure they have experience with cases similar to yours. Interviewing several lawyers can help you find one who meets both your needs and budget.

When searching for an attorney, check their credentials and ask about their track record with previous clients. Be sure that any questions you have regarding paperwork or procedures are answered thoroughly before signing any contracts or making payment arrangements. You should also ensure that the lawyer has experience handling cases specific to your type of debt, such as student loans or medical bills, so that they can best represent you during court proceedings.

Once a suitable attorney has been selected, it will be your responsibility to provide them with all relevant documentation related to your debts. This includes copies of pay stubs, account statements from creditors, tax returns from the past three years, insurance policies, and other documents that outline how much money is owed by each creditor. Having this information readily available will help expedite the process when filing for bankruptcy protection under Chapter 7 or 13 of the U.S Bankruptcy Code.

By taking these steps when finding a bankruptcy attorney, you’ll be better positioned for success as you move forward with filing for debt relief in accordance with federal law. The next step after locating an appropriate lawyer would then involve creating a timeline for how long it will take until your debts are discharged under court order – an important part of preparing yourself financially for life after bankruptcy.

The Bankruptcy Timeline

You’ll be amazed how quickly you can get back on track with the right bankruptcy attorney by your side! Understanding the timeline of a bankruptcy case is essential for anyone considering filing for debt relief. Knowing when certain steps are taken and what to expect throughout the various stages of the process will help filers understand their rights, as well as develop a plan to address their financial situation.

Here is an overview of the key points in the timeline for bankruptcy:

  • Credit counseling: The first step in any type of bankruptcy filing is to receive credit counseling from an approved agency. During this session, filers will learn about debt management and budgeting skills that can help them better manage finances going forward.
  • Filing petition: After completing credit counseling, filers must complete and file a petition with the court system outlining information on assets, liabilities, income, expenses, etc. Once filed, creditors will be notified and calls should stop.
  • Means testing: A means test determines if a person qualifies for Chapter 7 or Chapter 13 bankruptcy based on income level relative to applicable median levels. Those who do not qualify for Chapter 7 may still be able to file under Chapter 13 or proceed without filing at all.
  • Debtor education: Before discharge from bankruptcy protection becomes available (usually 3–5 months after filing), filers must complete debtor education classes which provide information about budgeting skills and strategies for avoiding future financial difficulties. This is also when creditors have access to other options such as setting up payment plans or negotiating settlements outside of court proceedings.

By understanding these key points in the timeline for bankruptcy, you can appreciate why it’s important to work with an experienced attorney who understands both federal and state regulations surrounding debt relief filings—and ultimately navigate through the process efficiently so you can start rebuilding your life again soon!

Understanding the Automatic Stay

As soon as you file for bankruptcy, an automatic stay is put in place to protect you from creditors and collection agencies. The automatic stay requires all creditors to cease their attempts to collect the debts owed by the filer. This includes contacting you directly or through a third party, filing any new lawsuits, repossessing cars or property, freezing bank accounts, sending letters of demand, garnishing wages, or making any other attempts at collecting a debt.

When filing for bankruptcy protection under federal laws, it’s important to understand what types of debts are dischargeable and which ones are non-dischargeable so that the automatic stay can be fully utilized. Non-dischargeable debts cannot be eliminated during bankruptcy proceedings and may include certain tax debts and student loans. Additionally, there may also be restrictions on who can file for bankruptcy depending on the type of petition filed; individuals must also meet certain credit counseling requirements before they can begin the process.

It’s important for debtors to familiarize themselves with applicable state and federal laws regarding bankruptcy before proceeding with their case in order to ensure compliance with all provisions set forth by law. When an individual files for bankruptcy protection, they have a right to expect that their creditors will comply with the protections offered by the court order’s automatic stay provisions; however, violations do occur from time-to-time. In such cases, legal action may be taken against those in violation of these terms including fines or imprisonment if warranted under applicable law.

Debtors should promptly contact their attorney if they suspect that a creditor has violated this provision since swift action is often necessary when dealing with these matters. Debtors who file for bankruptcy must have a clear understanding of all aspects related to this process, including how long it typically takes as well as potential pitfalls along the way like automatic stay violations or filing restrictions imposed by law, prior to beginning this process. Having such knowledge not only helps provide peace of mind but also increases chances of success throughout every step towards financial freedom provided by discharge from existing obligations under applicable law(s).

With this information in hand, it’s now time to turn our attention towards understanding more about ‘the bankruptcy discharge’.

The Bankruptcy Discharge

The Bankruptcy Discharge is the most desired outcome of filing for bankruptcy. It’s a legal order from the court that requires creditors to stop pursuing collection efforts, including phone calls, garnishments and lawsuits. This can be a great relief for those who have been struggling with debt for years.

When a Bankruptcy Discharge is granted, all debts listed on the petition are eliminated. In some cases, people may choose to consolidate their debts into one loan or work out payment arrangements with their creditors outside of court. Exempt assets like retirement accounts and certain types of insurance policies may also be protected in bankruptcy proceedings.

Table 1: Potential Challenges During Bankruptcy Proceedings

ChallengePossible SolutionsConsiderations
Creditor ChallengesFile an Adversary Proceeding
Seek Legal Guidance
Filing an adversary proceeding is time consuming and costly
Seeking legal guidance regarding creditor challenges can provide guidance to avoid potential problems down the road
Bankruptcy Abuse Prevention & Consumer Protection Act (BAPCPA)Consult with Attorney
Take Credit Counseling Course
Taking a credit counseling course could help you understand your financial situation better
Consulting with an attorney will help ensure you abide by BAPCPA regulations
The Bankruptcy Discharge

In addition to knowing when and how to file for bankruptcy, it’s important to know what happens after your debt has been discharged. You may want to start re-establishing your credit score by reaffirming any debts that were discharged but which you would still like to pay off such as student loans or mortgages. Additionally, seeking financial planning resources or taking credit counseling courses can help you stay on track towards rebuilding your credit after bankruptcy without accumulating more debt in the future. With careful planning and dedication, it’s possible to regain control over your finances and create stability in life again. The next step now is learning how best to rebuild your credit after bankruptcy so that you can move forward confidently and securely into the future.

Rebuilding Credit After Bankruptcy

Rebuilding your credit after bankruptcy can be a daunting prospect, but it is possible with dedication and planning.

In fact, nearly 80% of those who file for bankruptcy are able to rebuild their credit score within two years.

Repairing your credit score requires careful management of post-bankruptcy finances and implementation of tried-and-true strategies.

One way to do this is through debt consolidation, which involves combining multiple debts into one loan with a lower interest rate. This makes it easier to keep track of payments while also saving money on interest charges.

Additionally, budgeting tips can help you manage your finances more effectively by creating a plan to pay off any remaining debt in an affordable way.

Credit counseling services can also provide valuable guidance when rebuilding your credit after bankruptcy. These services offer advice on how best to use available financial resources in order to improve post-bankruptcy finances as quickly as possible while avoiding future pitfalls such as overextending credit or taking out additional loans that may not be necessary or affordable given the current situation.

Finally, it’s important to remember that although bankruptcy records remain on your report for up to ten years, there are still ways you can proactively work towards improving your credit score even during this time frame through responsible use of existing accounts and timely payments on all bills and accounts due each month.

Transitioning into alternatives to bankruptcy will further explore debt relief options beyond filing for bankruptcy protection.

Alternatives to Bankruptcy

Rebuilding credit after bankruptcy can be a daunting task. However, there are alternatives to filing for bankruptcy that may better suit your financial situation. Before making any major decisions regarding financial issues, it’s important to consult with an attorney or financial advisor who’ll have the expertise and knowledge needed to make an informed decision.

Rather than filing for bankruptcy, debt consolidation and credit counseling are two potential options for resolving serious debt problems without resorting to such drastic measures. Debt consolidation involves taking out a loan at a lower interest rate, which can then be used to pay off all existing debts in one lump sum payment. This approach also helps simplify budgeting by eliminating multiple payments from creditors and instead allowing one single monthly payment that’s more manageable.

Credit counseling offers guidance on developing sound budgeting strategies as well as advice on how best to repair any damaged credit. This type of service often includes assistance with negotiating repayment plans with creditors so that they can potentially avoid filing for bankruptcy altogether.

Additionally, many organizations offer free or low-cost financial education courses that provide customers with the necessary tools and information needed to improve their overall money management skills while avoiding difficult situations like bankruptcy in the future.

Voluntary surrender of property is also an option available depending on the individual’s circumstances; however, this should only be attempted after careful consideration and consultation with a qualified professional who’ll be able to offer objective advice about each option’s potential consequences.

With these alternatives in mind, individuals should take into account their own particular needs before deciding whether filing for bankruptcy is their best course of action or if another solution might work better for them.

  • Debt consolidation
  • Credit counseling
  • Budgeting strategies
  • Credit repair
  • Debt negotiation
  • Financial education
  • Voluntary surrender

No matter what path you choose, it’s important to remember that there are resources available if you need help navigating through difficult times financially—allowing you to regain control over your finances without having to resort to declaring bankruptcy.

Bankruptcy FAQs

If you’re in a tough spot financially, you may have questions about bankruptcy and how it could affect you. Before filing for bankruptcy, it’s important to understand what the process entails and the different types of relief available.

There are different qualifying criteria for each type of bankruptcy as well as varying ways to protect assets and consolidate debt. Fortunately, there are also resources available like credit counseling and financial planning that can help guide your decision-making process.

Understandably, when considering filing for bankruptcy, many people worry about their credit score or how they’ll ever recover their finances again. Bankruptcy laws exist to provide a fresh start financially and allow individuals to move forward from unmanageable debt loads.

In some cases, filing for bankruptcy can even limit future creditors’ access to certain assets while offering protection against collection activities by existing creditors.

When seeking assistance with resolving financial issues, exploring options for debt consolidation or asset protection should also be considered besides filing for bankruptcy relief. This is especially true if an individual has enough income to make meaningful payments towards their debts but would benefit from restructuring those payments into lower monthly amounts or having a portion of the debt forgiven altogether.

Credit counseling services can provide invaluable guidance on these topics both before and after deciding whether or not to file for bankruptcy relief.

No matter what your current situation is, there are resources available that can help you take control of your finances again, so you can move forward with confidence. Taking the time now to understand the various options available, plus learning more about taxes, budgeting strategies, and managing credit responsibly, will all contribute towards sound financial decision-making in the future.

Frequently Asked Questions

What happens to co-signers when I file for bankruptcy?

When it comes to managing debt, co-signers can be put in a tough spot when you file for bankruptcy. For example, let’s say you and your spouse have taken out a mortgage together and one of you files for bankruptcy. The one who hasn’t filed may be on the hook for the entire debt if their co-signer fails to meet their obligations.

In this case, avoiding foreclosure may be difficult without assistance from credit counseling or debt settlement services. It’s also important to understand the bankruptcy laws and how they affect both parties involved. Financial planning and understanding the different types of debt relief options available can help co-signers better manage their financial situation during this uncertain time.

How long will bankruptcy remain on my credit report?

When it comes to your financial future, it’s essential to understand how long bankruptcy will remain on your credit report. Depending on the type of bankruptcy you file, it can stay on your credit report for up to 10 years.

Rebuilding your credit after filing for bankruptcy takes patience and dedication. Credit counseling, loan forgiveness, and debt consolidation are all valid options available to help you get back on track with repayment plans that work within your budget.

Additionally, staying informed about the changing bankruptcy laws and understanding what steps need to be taken to improve your score is paramount when it comes to successful financial planning.

Is there a way to keep certain assets from being liquidated during bankruptcy?

You may be asking yourself, “Is there a way to keep certain assets from being liquidated during bankruptcy?”Well, the answer is yes – but it takes some financial planning and knowledge of the filing process.

Through credit counseling and other bankruptcy options like debt consolidation or asset protection, you can get the relief you need without sacrificing everything you own. With careful consideration and a bit of research into all your available bankruptcy relief options, you can protect your assets and get back on track financially.

Can I file for bankruptcy more than once?

Yes, you can file for bankruptcy more than once, but it’s important to know the costs associated with each filing and seek legal advice before doing so.

When filing for bankruptcy, a court process is in place to determine debt relief and repayment options. This could include creating a payment plan or other arrangements. Depending on the type of bankruptcy filed, there could be an impact on your credit score as well.

It’s best to speak with a qualified attorney about your situation to find out what options are available and the best way to move forward with seeking debt relief.

Are there any tax implications to filing for bankruptcy?

Filing for bankruptcy can be daunting, but it may be the only way to get out of overwhelming debt and start anew. To understand the tax implications, you must know that while avoiding fees and filing costs is possible, some debts, such as income taxes, still have to be repaid.

Additionally, any repayment plans or credit restoration efforts will most likely not provide total debt relief. However, bankruptcy can give you a fresh start and help with restoring your credit score over time.

With careful consideration of all aspects of filing for bankruptcy, you could gain financial freedom from overwhelming debt with minimal impact on your taxes.

Conclusion

Filing for bankruptcy may be a difficult decision, but it can help you get back on your feet. According to the American Bankruptcy Institute, over 800,000 individuals and businesses file for bankruptcy every year. It’s important to weigh all your options before deciding what’s best for you.

Make sure to consult with an experienced attorney who can help guide you in making the right decision for your financial future. No matter which path you decide on, remember that there’s always hope and a chance to rebuild your credit after filing for bankruptcy.