Bankruptcy attorneys help people and businesses deal with debt they cannot pay. Chapter 7 wipes out most unsecured debt in a few months for filers who qualify. Chapter 13 reorganises debt into a three- to five-year plan and can stop a foreclosure or catch up arrears. Chapter 11 restructures businesses and high-debt individuals.
Filing triggers an automatic stay: collection calls, wage garnishment, repossession and foreclosure proceedings stop while the case is pending. What you keep depends on exemptions, which differ sharply from state to state.
Before you hire
- Ask which chapter fits and why. The means test decides eligibility for Chapter 7, but the better answer often depends on whether you are trying to protect a house or a car.
- Ask what the flat fee covers and what the court filing fee and mandatory credit counselling add.
- Not all debt is dischargeable: most student loans, recent taxes, child support and fraud-based debts survive.
- Stop using credit cards and do not transfer property before filing. Both create problems that are expensive to fix.
Foreclosure defence, collections and consumer law cover neighbouring problems if bankruptcy is not the right tool.