Common Questions
Clear, data-backed answers to the most frequently asked questions
Understanding Your Bankruptcy Options
Bankruptcy law provides several paths to financial relief, each designed for different situations. Chapter 7 offers a fresh start through liquidation of non-exempt assets and discharge of qualifying debts, typically completed in 3 to 6 months. Chapter 13 allows you to keep your property while repaying debts over 3 to 5 years. Chapter 11 provides reorganization options for businesses and high-debt individuals. Understanding which chapter fits your situation requires analyzing your income, assets, debts, and financial goals.
Frequently Asked Questions
What are the different types of bankruptcy?
The most common types are Chapter 7 (liquidation for individuals and businesses), Chapter 13 (repayment plan for individuals with regular income), and Chapter 11 (reorganization for businesses). Each chapter has different eligibility requirements, timelines, and outcomes. A bankruptcy attorney or legal aid organization can help determine which option fits your situation.
How much does it cost to file bankruptcy?
Court filing fees are $338 for Chapter 7 and $313 for Chapter 13 as of 2026. Attorney fees vary by location and complexity but typically range from $1,000 to $2,500 for Chapter 7 and $2,500 to $5,000 for Chapter 13. Fee waivers are available for filers below 150% of the federal poverty guidelines.
Will bankruptcy stop creditor calls and lawsuits?
Yes. The automatic stay under 11 U.S.C. Section 362 takes effect immediately when you file and stops most collection activities, including phone calls, letters, lawsuits, wage garnishments, and foreclosure or repossession actions. Creditors who violate the stay can be held in contempt of court.