Considering Bankruptcy?
Bankruptcy can provide real legal relief from overwhelming debt, but it's a serious step. Here's how Chapter 7 and Chapter 13 work, and where to find official resources for your state.
Overview
Bankruptcy is a federal legal process that can discharge (Chapter 7) or restructure (Chapter 13) debt through the court system. It's generally considered when other options, settlement, consolidation, or credit counseling, aren't realistic given the size of the debt or an ongoing hardship.
Filing triggers an automatic stay, which immediately halts most collection calls, lawsuits, wage garnishments, and even foreclosure proceedings while the case is active, one of its most powerful immediate benefits.
This resource center covers both chapters, the means test, exemptions, and links to the full State Bankruptcy Resource Center for official court and legal aid information specific to where you live.
Start Here
New to this situation? These are the first things to read or do.
How This Usually Unfolds
Determine which chapter fits your situation
Complete required credit counseling
File with the court and trigger the automatic stay
Complete the process (discharge or repayment plan)
Educational Articles
Comparison Guides
Free Calculators
State-Specific Resources
Laws and rules for this topic vary by state.
Visit the State Bankruptcy Resource Center (courts, legal aid, forms)Related Videos
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Visit the ReliefGuardian YouTube ChannelFrequently Asked Questions
What's the difference between Chapter 7 and Chapter 13?
Chapter 7 liquidates non-exempt assets to discharge most unsecured debt within 3–6 months. Chapter 13 creates a 3–5 year repayment plan, letting you keep property like a home or car while catching up on payments.
Do I need to pass a means test?
For Chapter 7, yes, your income is compared to your state's median income. Filers who don't pass may still qualify for Chapter 13.