Bankruptcy is a serious legal decision. This educational tool walks through the key factors that typically influence Chapter 7 and Chapter 13 eligibility — so you can have a more informed conversation with a licensed attorney.
Important: This is not legal advice. Always consult a licensed bankruptcy attorney before making any filing decisions.
📋 Educational Tool: This is a simplified educational overview of bankruptcy factors. Consult a licensed bankruptcy attorney for accurate legal guidance.
Note on accuracy: The median income figure used above is a simplified national approximation, not your state's actual current U.S. Trustee Program figure. For the exact number used in a real filing, check the official U.S. Trustee median income table →
Your income ($48,000) vs. approximate state median ($77,050) for 2 person household
Consider all alternatives before filing
Debt settlement may cost less and have a smaller credit impact.
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Chapter 7 vs. Chapter 13 and see what typically gets discharged.
Chapter 7 (liquidation) eliminates most unsecured debts within 3–6 months but requires passing a means test and may involve surrendering non-exempt assets. Chapter 13 (reorganization) creates a 3–5 year repayment plan and lets you keep assets but requires a regular income.
The means test compares your income to the median income for a household your size in your state. If you earn less, you typically qualify for Chapter 7. If you earn more, you may need to file Chapter 13 or show that your disposable income after allowed expenses is insufficient for a repayment plan.
Chapter 7 remains on your credit report for 10 years. Chapter 13 remains for 7 years. Both have significant short-term impact but many filers see credit improvement within 2–3 years as they rebuild.
Yes — we strongly recommend consulting a licensed bankruptcy attorney before filing. This tool provides educational context only. An attorney can review your specific assets, income, and debts to recommend the best path.