Bankruptcy
Bankruptcy is a federal court process that lets people and businesses that cannot pay their debts either wipe them out or repay them under court protection. The rules are federal, but the property you can keep depends on your state.
What Does Bankruptcy Cover?
Most individuals file under Chapter 7, which can erase most unsecured debts such as credit cards and medical bills in a few months, or Chapter 13, which sets a three- to five-year repayment plan and lets you keep property such as a home facing foreclosure. A means test based on income decides who qualifies for Chapter 7. Filing triggers an automatic stay that stops most collection calls, lawsuits, wage garnishments and foreclosure sales. Some debts survive bankruptcy, including most student loans, recent taxes, child support and alimony. State exemption laws decide how much home equity, car value and savings you keep.
Choosing a Chapter
Which kind of bankruptcy fits, such as:
Stopping Collection
Relief from creditors, such as:
Your Home
Keeping or losing property, such as:
Family Obligations
Support and divorce debts, such as:
Contracts and Debts
How the obligations were created, such as:
Alternatives
Options before filing, such as:
Bankruptcy Lawyers in Your State
State law decides deadlines, forms and procedure, so start with the state where your matter is. Each page lists local attorneys and the cities where they work.
- Alabama58
- Alaska6
- Arizona64
- Arkansas36
- California209
- Colorado30
- Connecticut36
- Delaware7
- Florida97
- Hawaii18
- Idaho18
- Illinois61
- Indiana33
- Iowa18
- Kansas40
- Kentucky57
- Louisiana15
- New Jersey95
- New York126
- Texas75
When Do You Need a Bankruptcy Lawyer?
You can file without a lawyer, but bankruptcy courts dismiss many self-filed cases for missing documents or wrong exemptions, and a dismissed case can limit the protection you get if you refile. A lawyer is especially important in Chapter 13, when you own a home or business, or when a creditor claims a debt should survive.
Chapter 7 attorneys usually charge a flat fee paid before filing; Chapter 13 fees are often paid partly through the repayment plan. Before any filing you must complete a credit counseling course from an approved provider.
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Related Practice Areas
Talk to a Bankruptcy attorney
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This guide explains general rules in the United States and is not legal advice. Laws and deadlines differ by state, and only a licensed attorney can tell you how they apply to your situation.