Clear answers to the questions people ask most often about bankruptcy. If you don't find what you're looking for, call us — we're happy to help.
Bankruptcy is a federal legal process that helps individuals and businesses resolve overwhelming debt. It provides either a fresh start by eliminating qualifying debts (Chapter 7) or a court-approved plan to repay debts over time (Chapter 13). The moment you file, an automatic stay goes into effect that immediately stops most collection activity — lawsuits, wage garnishments, repossessions, and creditor calls.
Bankruptcy is worth exploring if you're unable to make minimum payments, facing lawsuits or wage garnishment, receiving constant creditor calls, or if your total debt exceeds what you could realistically pay off within five years. Other warning signs include using credit cards for basic necessities, falling behind on rent or mortgage, or considering dipping into retirement savings to pay down debt. A free consultation can help you evaluate whether bankruptcy is the right path — or whether another option fits better.
Chapter 7, sometimes called "liquidation bankruptcy," eliminates most unsecured debts within 3-6 months but requires passing a means test based on your income. Chapter 13, a "reorganization bankruptcy," puts you on a 3-5 year court-approved repayment plan and lets you keep property you might lose in Chapter 7 — like a home behind on payments or a car in repossession. An attorney can review your income, debts, and goals to determine which chapter protects you best.
Yes, immediately. The instant your case is filed, federal law imposes an automatic stay that stops nearly all collection activity — creditor calls, letters, lawsuits, wage garnishments, repossessions, and foreclosure proceedings. Creditors who continue to contact you after being notified of your filing can face court sanctions, so most stop right away.
The means test is a formula the court uses to determine whether you qualify for Chapter 7. It compares your household income to the median income for a household of your size in your state — if you're below the median, you typically qualify, and if you're above, the test looks at your disposable income after allowed expenses. Most filers qualify, and if Chapter 7 isn't an option, Chapter 13 nearly always is.
Chapter 7 typically takes 3-6 months from filing to discharge. Chapter 13 involves a 3-5 year repayment plan, though your automatic stay protection and attorney representation begin the day your case is filed. The initial paperwork is usually ready to file within 2-4 weeks of hiring an attorney.
Most filings require recent pay stubs, two years of tax returns, bank statements, a list of debts and creditors, a list of assets, and a record of monthly income and expenses. You'll also need a certificate of completion from an approved credit counseling course taken within 180 days before filing. Your attorney will provide a full checklist and help you gather anything that's missing.
The 341 meeting is a short, required hearing where you answer questions under oath from the bankruptcy trustee assigned to your case. Despite the name, creditors rarely attend. The meeting usually lasts 10-15 minutes and covers basic questions about your paperwork, income, and assets — your attorney prepares you in advance and attends with you.
For most filings, the 341 meeting is the only hearing you'll attend, and it's typically held in a conference room or virtually rather than in a courtroom. You'll only appear before a judge if a specific issue requires a ruling, which is uncommon in straightforward Chapter 7 and Chapter 13 cases.
Yes. Federal law requires you to complete an approved credit counseling course within 180 days before filing, plus a second course on personal financial management before your debts are discharged. Both are short (typically 60-90 minutes) and can be completed online or by phone for a small fee.
In most cases, no. Homestead exemptions protect a certain amount of equity in your primary residence, and if you're current on your mortgage, you can typically keep your home in Chapter 7. Chapter 13 can even help you catch up on missed mortgage payments by rolling the arrears into your plan. Exemption amounts vary by state, so an attorney will review your situation and confirm exactly what's protected.
Usually, yes. Vehicle exemptions protect a certain amount of equity in your car, and if you're current on your loan, you can typically keep driving it. In Chapter 13, you can catch up on missed car payments through your plan, and in some cases you can reduce the amount owed to the vehicle's current value.
Exemptions are laws that let you keep specific property when you file — typically your home (up to a certain equity amount), a vehicle, household goods, retirement accounts, and tools of your trade. Every state has its own exemption list, and some states let you choose between federal and state exemptions. Your attorney will apply the most favorable exemptions to your case to protect as much property as possible.
Yes. The automatic stay triggered by filing immediately halts foreclosure proceedings, repossessions, and sheriff's sales — even if a sale is scheduled for the next day. Chapter 13 is particularly powerful here: it lets you keep your home and car and catch up on missed payments through a court-approved plan over 3-5 years.
Most filers don't lose any property. In Chapter 7, a trustee can sell non-exempt assets to pay creditors, but exemptions protect the essentials most people own. If you do have significant non-exempt assets — a vacation home, a second vehicle, or a large investment account — Chapter 13 often lets you keep them by paying their value back to creditors through your plan.
Bankruptcy can eliminate most unsecured debts, including credit card balances, medical bills, personal loans, old utility bills, past-due rent, payday loans, and deficiency balances after a repossession. It can also discharge many lawsuit judgments and certain older tax debts. Your attorney will review your debt list and explain exactly which of your debts would be discharged.
Student loans are generally not dischargeable unless you can prove "undue hardship" — a high legal standard that's difficult but not impossible to meet. Even when student loans survive bankruptcy, eliminating other debts often frees up enough income to make loan payments manageable and opens the door to income-driven repayment or forgiveness programs.
Some older income tax debts can be discharged if they meet specific tests — generally, the taxes must be at least three years old, the returns must have been filed at least two years ago, and the debt must have been assessed more than 240 days before filing. Recent tax debt, payroll taxes, and fraud-related tax debt are typically not dischargeable. An attorney can review your tax transcripts and tell you exactly what's eligible.
Bankruptcy will initially lower your credit score, but if your credit is already damaged by missed payments, collections, or charge-offs, the additional impact is often smaller than people expect. Many filers see their scores begin recovering within 6-12 months as accounts are discharged and balances drop to zero. Chapter 7 stays on your credit report for up to 10 years; Chapter 13 for up to 7 years.
Yes, and often sooner than people expect. Many lenders offer auto loans within a year of discharge, and most mortgage programs allow home purchases 2-4 years after bankruptcy, depending on the chapter filed and your credit behavior since then. FHA, VA, and USDA loans often have shorter waiting periods than conventional financing.
Yes, completely free. There is no cost for your initial consultation with an attorney, no credit card required, and no obligation to proceed. The call is simply an opportunity to get honest answers about your situation from someone who handles these cases every day.
Most callers are connected with a bankruptcy attorney within 24-48 hours of their initial call. In urgent situations — such as an imminent foreclosure sale, wage garnishment, or lawsuit — we work to expedite the process and connect you the same day when possible.
A general idea of your total debts, monthly income, and major assets (home, car, retirement accounts) is helpful but not required. You don't need paperwork organized perfectly — the attorney will walk you through what matters and tell you what to gather later. The main thing you need is a willingness to have an honest conversation about your situation.
Absolutely not. The consultation is for your benefit. The attorney will explain your options — including non-bankruptcy alternatives like debt negotiation or consolidation if they fit your situation better — and you make the decision on your own terms and timeline.
Based on the details you share during your initial call — the type of debt you have, your income, your state, and any urgent issues — we connect you with a bankruptcy attorney licensed where you live who handles cases like yours. You'll never be passed around; you speak with the attorney directly.
Call for a free consultation and get personalized answers from an experienced bankruptcy attorney.