To file Bk or not to file?

[bijou-MP5]

What is the name of your state? IL

This is regarding to my parents, but since they are not good English speaker, I'm asking experts for help.
My parents owns Cleaner but monthly income is always minus.
business is going really bad, can't pay rent for store and APT, gas, phone, , other utility bills. also they have borrowed huge amount of money from others.(~$80,000)
and they have few credit card bills are already went to collections agency.
They want to pay off bills but since they have minus income from store, they can't keep up.
so, they are thinking about filing BK soon. but they have no idea what is the first things to do.
What chapter of BK will be suitable for them? ch 7? how much is hiring BK attorney?
and what can be included in BK for? I mean does utility bills have to pay up no matter what?
sorry about too many questions. I just don't want my parents to always agree and depends on whatever the attorney will say.
but help is very appereciated.

 

[Ladynred]

First, read the FAQ on this site about bankruptcy.
Second, read up on this site: www.thebankruptcysite.com for more info and for your state's exemptions.

Both of these will help you understand what can be inluded. I would suggest that you (or your parents) call around for a couple of free consultations with bankruptcy attorney's in your area to find out what chapter would be best for them and how much it would cost. Federal filing fee is set at $200, the rest goes to the lawyer and fees vary greatly by area.

 

[bijou-MP5]

Thank you for your help Ladynred
I will go ahead and read infos you suggested and give call to free consultations.