At the time, it may seem like the worst thing ever to be filing bankruptcy forms, although there are worse fates. What if you’ve finally accepted that you have no other options and your bankruptcy petition gets rejected because you failed to follow proper protocol or you misunderstood the process? Before you file, be sure to get the bankruptcy facts so you don’t make any of these errors.

First, let’s take a look at the most basic bankruptcy facts and what filing bankruptcy forms can and can’t do for you. Consumer law allows you the ability to legally eliminate most — if not all — of your debts through a bankruptcy discharge. This includes all credit cards, medical/hospital bills and some personal loans. If your car has been repossessed or your home in is foreclosure proceedings, court bankruptcy forms will put a stop to these actions. You’ll be able to stop wage garnishment, utility shut-offs and debt collector harassment as well. However, bankruptcy can’t completely absolve a car loan, a student loan or a mortgage payment. It cannot discharge alimony payments, child support payments, criminal fines, IRS tax debt or court restitution orders. Filing for bankruptcy cannot save you from debts you incur after the initial filing and cannot protect your spouse or cosigner.

Don’t be in the dark when it comes to bankruptcy facts. Even though you feel you have no money at all, you will need to summon up some cash for the legal forms, filing and legal professional fees. With Chapter 7, it’s possible to fill out the paperwork yourself if you understand the law well enough, but you will still need to pay nearly $300 to the court in administrative fees. Hiring the power of attorney to see you through could cost from $400 to $1,500. If you’re filing for Chapter 13, you won’t be getting off completely free, as you will need to sign up to a monthly payment plan to satisfy your debts. Most people who are in debt would preferably try debt consolidation or debt settlement as an alternative to bankruptcy, but only bankruptcy can help people whose homes are in foreclosure, cars have been repossessed, wages have been garnished or who have been sued by creditors.

Here are several more bankruptcy facts to consider. The court costs and legal professional fees can cost upwards of $1,000 in some cases and cannot be discharged. However, you can talk to your lawyer about ways to reduce your fees or wrap the costs up into your Chapter 13 payments. Be aware that property can be lost in a Chapter 7 filing if your assets exceed the state/federal exemptions. However, you can sometimes recover your favorite possessions by paying the difference from the exemption. Bankruptcy will appear on your credit report for 10 years, which will impact your ability to rent an apartment, buy a home, buy a car, take out a student loan, gain access to credit cards or sometimes even get a job. However, you may begin rebuilding your credit by continuing to make regular payments on your car or home and taking out a loan from yourself, which you pay off each month.