Bankruptcy Frequently Asked Questions
Explore the full guideWhat is bankruptcy?⌄
A federal legal process, filed through the U.S. Bankruptcy Court, that can discharge or restructure debt under court protection. Read more →
What's the difference between Chapter 7 and Chapter 13?⌄
Chapter 7 liquidates non-exempt assets to discharge most unsecured debt quickly; Chapter 13 restructures debt into a 3-5 year repayment plan while generally keeping property. Read more →
How do I qualify for Chapter 7?⌄
Primarily through the means test, comparing your income to your state's median. Higher earners may still qualify depending on allowed expenses. Read more →
How much does bankruptcy cost?⌄
Court filing fees are currently $338 for Chapter 7 and $313 for Chapter 13 per uscourts.gov, plus attorney fees that vary by case and location. Read more →
How long does bankruptcy take?⌄
Chapter 7 often resolves in a few months in simple cases; Chapter 13 runs a 3-5 year repayment plan. Read more →
Will I lose my house?⌄
Not necessarily — homestead exemptions may protect some or all home equity, and Chapter 13 can help you catch up on missed payments. Read more →
Will I lose my car?⌄
Not necessarily — vehicle exemptions may protect some equity, and reaffirmation or redemption can help you keep a financed vehicle. Read more →
Does bankruptcy stop wage garnishment?⌄
Generally, yes, through the automatic stay, though timing can vary and isn't always instant. Read more →
Does bankruptcy stop foreclosure?⌄
Filing generally halts foreclosure proceedings temporarily, and Chapter 13 can offer a path to catch up on mortgage arrears. Read more →
Does bankruptcy stop a lawsuit?⌄
Yes, generally — the automatic stay halts most pending collection lawsuits once you file. Read more →
How does bankruptcy affect my credit?⌄
It typically causes a significant drop and stays on your report up to 10 years (Chapter 7) or 7 years (Chapter 13), with gradual recovery over time. Read more →
Can all my debts be discharged?⌄
No — most student loans, recent taxes, and support obligations are generally not dischargeable. Read more →
Is bankruptcy the same as debt settlement?⌄
No. Bankruptcy is a court process with legal protections; debt settlement is a private negotiation with creditors. Read more →
Do I need an attorney to file?⌄
You're not legally required to have one, but bankruptcy involves complex, consequential decisions, so most filers consult an attorney before proceeding. Read more →
What are bankruptcy exemptions?⌄
Categories of property protected from liquidation, which vary significantly by state — confirm current amounts with an attorney or your state's statute. Read more →
Can I file bankruptcy more than once?⌄
Yes, but there are time limits between filings and discharges that depend on which chapters were involved — an attorney can confirm your specific timeline. Read more →
This information is for general education only and is not legal advice. Bankruptcy law is complex and varies by jurisdiction and individual circumstances. Consult a licensed bankruptcy attorney before making any decisions about filing.