Bankruptcy is a difficult decision that needs to be taken only after you have considered the detail of every possible legal rights and options available in your situation. In most cases, individuals under the severe debt burden are left with no other better choice than to file for bankruptcy. With two contradictory verdicts regarding insolvency, it’s a tough struggle that individuals have to go through before they can actually make a decision. While one opinion says that bankruptcy should be avoided by all means since it can only hurt all parties involved, the other opinion claims that it is an effective option to get rid of a severe debt situation and start anew. In reality, whether you should file for insolvency depends largely on your financial situation, your ability to pay and the other options you have, if any. It is always advisable to consult reputed debt solution services that can advice you correctly if bankruptcy is an appropriate option for you, and if it is what the right ways to file for it are. If bankruptcy is found to be the most suitable debt solution for you, it is essential to have certain important information on how collapse courts work. There are certain debts that cannot be cleared through a bankruptcy court, such as alimony and child support, student loans, back taxes, fraudulent loans etc. For personal debts, a insolvency court provides individuals with two choices, namely, chapter 7 or straight bankruptcy, and chapter 13 or wage earner collapse. While chapter 7 bankruptcy allows the court to seize all your non-exempt assets in order to pay off the loans, in chapter 13 bankruptcy entitles you for an easy repayment loan based on your income and conveniences. In the latter case, the court negotiates with the creditors regarding the monthly payment amount and the period of time over which the payment would be made. In the successful collapse filing, courts have made it compulsory to undergo a course in Credit Counseling and present the Bankruptcy Counseling Certificate at in the court during the time of filing. The course has to be completed within a period of 180 days before the filing. In case you have received the certificated before 180 days of filing, the course must be repeated. In the United States, a special act was signed in 2005 known as The Bankruptcy Abuse Prevention and Consumer Protection Act, which aimed at restricting individual access to United States insolvency courts. It was done as a precautionary measure to make individuals more cautious while getting into careless debt situations without thinking of future consequences, and using bankruptcy as an easy way out. Through this act, it was made difficult for individuals to file for bankruptcy by increasing the payment amounts for insolvency 13 and introducing new limitations for chapter 7. Once you have filed for bankruptcy, it is required by the court that you must complete a course on Personal Financial Management. In case you file the Certificate of Completion without completing the Personal Financial Management, the court will simply shut off your case without a discharge.