Bankruptcy is defined as the condition of being bankrupt or insolvent. If you file for bankruptcy you need to talk to a lawyer before you file the papers with the Bankruptcy Court. Conversely you can file for bankruptcy pro se (by yourself - without an attorney). You will also need to conform with the various restrictions governing the process. This often includes an approved counselling course. To file for certain types of bankruptcy you will need to measure up to certain criteria. In the United States, you must pass a means test to file for bankruptcy under Chapter 7. In Scotland, the Low Income, Low Asset test establishes whether you can petition for bankruptcy without going to court. If you file for bankruptcy, you must be prepared to take the consequence of your actions. Bankruptcy destroys your credit. It will take time to build up your credit rating.