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Here’s a short overview of personal bankruptcy:
- Purpose: Protect you from creditors, wipe out most debts, and protect certain property.
- Chapters: Most individuals file Chapter 7 or Chapter 13 (11 U.S.C. § 101 et seq.).
- Chapter 7: Cheaper, usually ~5 months. Discharges credit cards, medical bills, personal loans. Usually does not eliminate most taxes, student loans, or support obligations. You must show your allowed living expenses exceed your take-home income. It’s a liquidation chapter, but most filers keep everything using exemptions; if an asset isn’t exempt, the court can sell it to pay creditors.
- Chapter 13: Also stops creditors, but you repay part of your debts in a 3–5 year court plan. Used if you make too much for Ch. 7 or to save a home from foreclosure (among other reasons).
- Next step: Meet a local bankruptcy attorney to review income, expenses, and assets to confirm eligibility for Ch. 7 and whether anything is at risk before deciding.
Hope this helped. Reach out anytime if you need more legal information.
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Bankruptcy.
Have you already filed or are you considering it?
Considering.
Are you looking at Chapter 7, Chapter 13, or another type?
I don't know.
Anything else the bankruptcy lawyer should know?
Yes.
Alex, Esq.
Hi, I’m Alex, a bankruptcy attorney (15+ years). Sorry you’re dealing with this—happy to help. Before we continue: 1) What’s driving this—lawsuit, garnishment, foreclosure, something else? 2) What kinds of debts do you have?
I don't know.
Alex, Esq.
Here’s a short overview of personal bankruptcy:
- Purpose: Protect you from creditors, wipe out most debts, and protect certain property.
- Chapters: Most individuals file Chapter 7 or Chapter 13 (11 U.S.C. § 101 et seq.).
- Chapter 7: Cheaper, usually ~5 months. Discharges credit cards, medical bills, personal loans. Usually does not eliminate most taxes, student loans, or support obligations. You must show your allowed living expenses exceed your take-home income. It’s a liquidation chapter, but most filers keep everything using exemptions; if an asset isn’t exempt, the court can sell it to pay creditors.
- Chapter 13: Also stops creditors, but you repay part of your debts in a 3–5 year court plan. Used if you make too much for Ch. 7 or to save a home from foreclosure (among other reasons).
- Next step: Meet a local bankruptcy attorney to review income, expenses, and assets to confirm eligibility for Ch. 7 and whether anything is at risk before deciding.
Hope this helped. Reach out anytime if you need more legal information.
