Filing for bankruptcy is to enter the court of last resort. It is not to be taken lightly. Filing for bankruptcy indicates to the courts you are insolvent - unable to reduce, eliminate or maintain the arrived at level of debt. There are procedures you need to follow. This is true no matter what country you live in. In the United States, the requirements and procedures are provided in the Bankruptcy Abuse Prevention and Consumer Protection Act. The United Kingdom has the Insolvency Act. Canada has the Bankruptcy and Insolvency Act. In Brazil, filing for bankruptcy is regulated by the Bankruptcy Law. Bankruptcy is a state of being insolvent or without the means to meet the demands of creditors. You can file on your own volition (voluntary bankruptcy) or creditors can file for you (involuntary bankruptcy). Immediately upon filing for bankruptcy, the court will issue a Stay of Proceedings. This protects you from the immediate actions of creditors. After filing bankruptcy, creditors can no longer garnish your wages or seize your assets.