Discharging or restructuring debt through federal bankruptcy protections.
Bankruptcy is a federal legal process, but it interacts closely with state law in one crucial way: exemptions, which determine how much of your property — home equity, a vehicle, retirement accounts, personal belongings — you get to keep. Individuals typically file under Chapter 7 (liquidation, generally faster, discharges most unsecured debt) or Chapter 13 (reorganization, involves a 3-5 year repayment plan, often used to catch up on a mortgage or car loan while keeping the property).
Federal law requires an approved credit counseling course within 180 days before filing any bankruptcy case.
The means test compares your income to your state's median income for a household your size to determine which chapter you qualify for.
This includes income records, a complete list of debts and creditors, asset values, and recent tax returns.
Filing triggers the automatic stay, which immediately halts most collection calls, wage garnishments, and lawsuits while the case is pending.
A trustee reviews your paperwork and may ask questions under oath; most creditors do not attend.
Chapter 7 discharges typically arrive a few months after filing; Chapter 13 requires completing the full 3-5 year plan before discharge.
Not necessarily. Exemptions (covered in the state-specific section below) protect a certain amount of home equity and vehicle value in many cases, and Chapter 13 in particular is often used specifically to catch up on secured debt payments while keeping the property.
Most student loans, recent tax debts, child support, alimony, and debts from fraud are generally not dischargeable, though there are narrow exceptions depending on the circumstances.
A Chapter 7 filing can remain on a credit report for up to 10 years and a Chapter 13 for up to 7 years from the filing date, though many people see their credit score begin recovering well before that window closes.
No — the automatic stay that takes effect immediately upon filing legally requires most creditors to stop collection calls, letters, garnishments, and lawsuits, with violations potentially subject to court sanctions.
It is legally possible to file without one, but bankruptcy involves detailed federal forms, exemption calculations, and deadlines where mistakes can result in case dismissal or loss of property that could otherwise have been protected.
Select your state for deadlines, fault rules, court information, and a full walkthrough specific to where you live.
Compensation for physical, emotional, and financial harm caused by another party's negligence.
Recovering damages after a motor vehicle collision, from fender-benders to catastrophic crashes.
Ending a marriage and resolving property, support, and parenting arrangements that follow.
Establishing legal and physical custody, visitation, and parenting time arrangements.