Overview
Crushing debt from medical bills, job loss, divorce, or business failure can feel inescapable — but bankruptcy law exists specifically to give honest people a financial fresh start. Filing for bankruptcy triggers an automatic stay that immediately stops creditor calls, wage garnishments, and foreclosures. A bankruptcy attorney evaluates your situation, explains which chapter is right for you, and guides you through the entire court process.
Chapter 7 bankruptcy discharges most unsecured debts (credit cards, medical bills, personal loans) within 3–6 months — but requires passing a means test based on income. Chapter 13 bankruptcy lets you keep assets while repaying debts on a 3–5 year court-approved plan. An attorney analyzes your income, assets, and debts to determine the best path and ensure your exemptions are fully protected.
Important: Lawyer Lead Center is a legal referral service, not a law firm. The information on this page is for general informational purposes only and does not constitute legal advice. Results vary depending on the facts of your case, applicable law, and the attorney you retain. Consult a licensed attorney in your state for advice specific to your situation.
Key Reference Information
| Bankruptcy Type | Best For | Process Length | Key Benefit |
|---|
| Chapter 7 | Low-income, high unsecured debt | 3–6 months | Most debts discharged |
| Chapter 13 | Regular income, protect assets | 3–5 years | Keep home / car |
| Chapter 11 | Businesses, high-income individuals | 1–3 years | Reorganize operations |
| Chapter 12 | Family farmers and fishermen | 3–5 years | Flexible repayment |
| Debt Negotiation (non-bankruptcy) | Moderate debt load | Varies | No court filing |
Frequently Asked Questions
Will bankruptcy ruin my credit forever?+
A Chapter 7 bankruptcy stays on your credit report for 10 years; Chapter 13 for 7 years. However, most filers see credit scores begin to recover within 1–2 years as they build new positive history on a debt-free foundation.
What debts can't be discharged in bankruptcy?+
Student loans, most tax debts, child support, alimony, and debts from fraud generally cannot be discharged. An attorney can identify which of your debts are dischargeable.
Can I keep my house and car if I file bankruptcy?+
Many filers keep their home and car by using state exemptions in Chapter 7 or by catching up on arrears through a Chapter 13 repayment plan. Your attorney will protect your assets to the maximum extent allowed by law.
What is the automatic stay?+
The automatic stay is an immediate court injunction that stops virtually all collection actions the moment you file — creditor calls, lawsuits, wage garnishments, bank levies, and foreclosure proceedings.
How much does it cost to file bankruptcy?+
Court filing fees are $338 for Chapter 7 and $313 for Chapter 13. Attorney fees vary by case complexity. Many bankruptcy attorneys offer free consultations and payment plans for their fees.
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