Bankruptcy is a legal recourse, which allows a person or company to erase or negotiate, all or some of their debts. The process is relatively straightforward, but the bankruptcy laws themselves are complex. For that reason, the vast majority of people who apply to this law, use a lawyer to prepare and present their case. In this process, the court assigns an official, called in English: Trustee, which translates as, the Trustee. This court official is the person assigned to evaluate your case, and his job is to make sure that you are not lying or hiding something, it is to defend, you are not committing fraud; and at the same time see if there is some way in which you can repay those who owe them, even if it is a part of the debt.

Bankruptcy law has 6 chapters dedicated to different situations, people and issues. Each chapter has its requirements, benefits and procedure. The best-known chapter, and also the one preferred by individuals in this situation, is chapter 7, but there is also chapter 13. Chapter 11 for companies, chapter 12 for families engaged in fishing and / or agriculture, chapter 9 for cities and municipalities, and finally chapter 15, which is for cases that require the cooperation of the courts and institutions of other countries. The cost of a bankruptcy is usually well below what the applicant gets in exchange, forgiveness or renegotiation of the terms of their debts. For example, the average cost of a chapter 7 in South Florida in 2019 was around $ 1,600 including court, course and attorney costs.