Bankruptcy 101: How It Works

The first step when it comes to filing for bankruptcy is to brush up on the process. In this video, we take a closer look at the bankruptcy procedure. Once the bankruptcy petition has been filed with the U.S. Bankruptcy Court, an automatic stay is placed on all of your accounts to stop collection calls and foreclosure proceedings, and to prevent creditors from seizing any assets before the liquidation process has been imitated. You can find out how bankruptcy affects secured and unsecured debts in this clip.