Filing bankruptcy is a complicated, long, and official procedure. Those who are in utmost financial crisis and have no other way to resolve the situation can think about filing for bankruptcy. It gives them some relief from the debts and gives them chance to move toward the future by taking the assistance of the law and discharging their loans or extending the loan tenure. Filing for bankruptcy needs a lot of patience and caution. So it is not easy to file bankruptcy on your own without the help of a bankruptcy lawyer.
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New bankruptcy laws have made it necessary for debtors to take careful stock and responsibility of their financial behavior. These laws have made to file bankruptcy more difficult. Chapter 7 bankruptcy is considered as a liquidation bankruptcy. If the debtor has not filed a bankruptcy within 8 years, he or she should sign over all the existing belongings and liable properties to a trustee who will convert them into cash and pay back to the creditor, and the debtor may be discharged. In chapter 13 bankruptcy the debtor agrees to pay back the debts to the creditor   by installments with in the period of five years.

 
According to the new law, a debtor can choose either Chapter 7 or chapter 13. But the person who chooses chapter 7, should have the right asset value otherwise the judge can transfer the claim to Chapter 13 which is a restructuring plan. The debtor should go to a court approved by credit counselor.  The debtor’s lawyer will face the legal responsibility, if the debtor is ineligible for chapter 7.
 
In order to come out of bankruptcy, people commit frauds. One of the most common bankruptcy frauds is concealing assets to avoid paying debts to their creditors. To hide their assets they transfer their property to close relatives or friends before a few months of bankruptcy case. In the other case, people file for bankruptcy under false name in more than one state to avoid liquidation. This type of fraud is called multiple filing. Bankruptcy fraud carries a sentence of five years imprisonment to the convict