The US Courts website maintains statistics for all bankruptcy filings from 1995 through 2007.  Many media outlets have reported that bankruptcies are on the rise; the cumulative data that was released at the end of fiscal year 2007 (September 30, 2007) contradicts these reports.  In the 2007 fiscal year, there were 25,925 business bankruptcies filed and 775,344 non-business bankruptcies filed in federal court for a total of 801,269 bankruptcies filed in 2007.  In 2006 the numbers were 27,333 business filings and 1,085,209 individuals for a total of 1,112,542.
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In a February 20, 2008 press release, The Sharper Image has announced that it has filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code.  The Sharper Image is home to some of the most unique high-end electronic gadgets with a strong customer base throughout the world.  According to the press release, “the Company intends to continue to conduct business as usual while it devotes renewed efforts to resolve its operational and liquidity problems and develops a reorganization plan.”
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The United States Bankruptcy Code from 1978 was rewritten and is now known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (Public Law No. 109-8, 119 Stat. 23, April 2005).  This reform act took nine years from the start of discussion to actual enactment and went into effect on October 17, 2005.  This act is the most recent revision of the Title 11 Bankruptcy Code (11 USC § 101 et seq).  This new law has made major changes to both chapter 7 and chapter 13 bankruptcies.  Chapter 7 of the bankruptcy code is liquidation and chapter 13 of the bankruptcy code is a reorganization of your debts. 

You can receive a full copy of the text via the Government Printing Office; click here for the Reform Act.  The House Judiciary Committee also has a redline version of the act online.  The redline version shows the line-by-line contextual changes in the act.  The American Bankruptcy Institute has made that document available here – Public Law 109-8.

An important step in determining whether or not to file for bankruptcy is your plan to rebuild your credit after your bankruptcy has been discharged. Credit is a necessity; adequate credit is needed for anything from automobile insurance to renting or owning a home. The old adage is the better your credit is going into a bankruptcy petition; the better it is upon discharge.
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If you are reading this site then you are probably in a financial bind and are considering bankruptcy as one of your options for debt relief.  Filing for bankruptcy is a federal court procedure.   The first step in filing for bankruptcy is to find a knowledgeable bankruptcy attorney.  The attorney will sit down with you and go over all of your assets as well as all of your debt to determine which chapter of bankruptcy would be appropriate for you to file; Chapter 7 Bankruptcy or Chapter 13 Bankruptcy.  Upon determining which chapter you will file the paperwork begins.  Your credit reports will be pulled in order to make sure that there are no debts that you’ve missed.  The protections offered under the two bankruptcy codes will begin once the bankruptcy petition is filed in a federal court.

Now that you know a bit about getting started you may be asking yourself, is this the right step for me?  There are alternatives to filing for bankruptcy but for the most serious of cases bankruptcy is the right step.  The bankruptcy laws were changed in 2005 and are written in such a way to help the person gain the most benefit out of filing for bankruptcy.  Not only does it give them a fresh start with regards to debt but with the counseling classes it gives the individual more knowledge to make the best of the fresh start.