One of the most serious and life altering decisions could be to file for a bankruptcy. You should take due considerations before proceeding with such a decision. Before you undertake any action, it is necessary to know about the process of bankruptcy filing’s ins and outs. There are two types of bankruptcies namely, Chapter 7 and Chapter 13 bankruptcy. The only way to prove that you are insolvent is to show the court that you do not have the resources to pay for the debts in your name without some external assistance.