Are bills piling up while you're out of work and stuck at home because of the COVID-19 pandemic? Are you thinking that filing for bankruptcy might be a good way to fix your financial situation? If so, you're not alone.

Bankruptcy is a legal process that can help people like you who can't pay their bills. It allows you to wipe out your debt and get a fresh start. Filing for bankruptcy will also put a halt to foreclosure or legal actions against you, and it stops creditors from calling and demanding payment. This "breathing space" is one of the most desired benefits of filing bankruptcy.

But there are a few things you should know before you take that giant step. Bankruptcy won't solve all your problems. You'll need help, and it can be a long (and costly) process. There are other important considerations, too. So, to help you figure out the best path for you, here are 10 things you should know before filing for bankruptcy.

There Are Two Common Types of Bankruptcy for Individuals

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If you choose to file bankruptcy, you have to decide which type is best for you based on your own situation--Chapter 7 or Chapter 13. Most bankruptcies for ordinary people are filed under these two chapters of the Bankruptcy Code.