Bankruptcy
Bankruptcy is a federal court process for people whose debts have outgrown any realistic plan to repay them. Chapter 7 discharges qualifying unsecured debt relatively quickly, while Chapter 13 reorganizes debt into a repayment plan lasting several years.
Filing triggers an automatic stay, which generally stops collection calls, wage garnishment and foreclosure proceedings while the case is active. Which chapter fits depends on income, assets and what you are trying to protect.
Availability
Hire Best Pros is not connecting people with bankruptcy professionals yet. This page is here as background reading while we work on it. Everything we do cover today is listed in our service directory.
What people usually need
- Chapter 7 liquidation cases
- Chapter 13 repayment plans
- Stopping wage garnishment and collection actions
- Protecting a home from foreclosure through a plan
- Medical and credit card debt discharge
- Understanding which debts survive bankruptcy
What to weigh before hiring
Not every debt is dischargeable
Most student loans, recent taxes, child support and alimony generally survive bankruptcy. Knowing what will remain is essential before deciding whether filing solves the problem.
Exemptions decide what you keep
State and federal exemption rules determine which property is protected. These differ substantially by state and are one of the main reasons to get advice specific to where you live.
Timing matters
Transfers of property, large payments to one creditor, and new borrowing shortly before filing can all cause problems. Discuss any planned transaction before making it.
Common questions
- How long does bankruptcy stay on a credit report?
- Generally seven to ten years depending on the chapter. Many people find that credit begins to recover well before the entry drops off.
- Will I lose my home or car?
- Not necessarily. It depends on equity, exemptions and whether you keep up secured payments. This is highly state-specific.