Personal bankruptcy is a scary prospect for many people. It is easy to think that you are letting people down when you file, but this isn't the case. Instead, your bankruptcy case is a way for you to regain control of your finances. When you file, your creditors can plan for the outcome of the case and not having the full payment that is due on your account.
One thing to remember when you are considering bankruptcy is that you will have to determine what type of case you need to file. There are two primary types of personal bankruptcies -- Chapter 7 and Chapter 13.
Chapter 7 is only for people who can pass the means test. If you don't have assets or income higher than a set limit, you can file. In this type of bankruptcy, the assets that you do have that aren't excluded from the case are liquidated to pay creditors. Once the money from that liquidation is gone, the creditors won't get more money. The case is then discharged as long as you've met your obligations in the case.
Chapter 13 is often called the wage earners plan. In this type of bankruptcy, you will make payments to the court on a set schedule. You must make these as ordered. Once you do this and comply with other requirements, your case is discharged.
In all bankruptcy cases, you must ensure that you are being fully honest with the court. Trying to hide assets or give them away so you can get them back later can lead to serious trouble. You don't need that kind of issue in your case, so keep everything on the up and up.